Kuala Lumpur: Malaysian Prime Minister Anwar Ibrahim has cautioned that global trade is no longer a neutral ground but a geopolitical tool, urging the Association of Southeast Asian Nations (ASEAN) to brace for a lasting shift in international economic relations.
Speaking at the opening of ASEAN’s annual foreign ministers’ meeting, Anwar warned that trade is being “weaponised” amid escalating tariff threats from the United States, though he did not mention the US directly.
“We are witnessing a time where power disrupts principle and instruments of economic growth are being turned into levers of pressure and containment,” Anwar said. “This is no passing storm. It is the new weather of our time.”
Rising Tariff Fears
Anwar’s comments come as six ASEAN countries—including Malaysia, Thailand, Indonesia, Cambodia, Laos, and Myanmar—face steep new US tariffs set to take effect on August 1. These duties, ranging from 25% to 46%, were first announced in April by former President Donald Trump and are seen as part of a broader protectionist push.
Only Vietnam has managed to secure a bilateral agreement, reducing its tariff rate from 46% to 20%. For others, the pressure is mounting.
- Thailand and Cambodia face tariffs of 36%
- Indonesia: 32%
- Malaysia: 25%
- Laos and Myanmar: 40%
Many ASEAN nations are now pursuing individual negotiations with Washington, although a collective ASEAN-US summit is also being planned to build a unified approach.
Malaysia Pushes Back
In response to the deteriorating trade environment, Malaysia’s central bank cut its benchmark interest rate for the first time in five years. Meanwhile, Malaysian Trade Minister Zafrul Aziz reaffirmed the country’s commitment to dialogue but made it clear that any trade deal must uphold national interests and sovereignty.
“We won’t agree to any deal that compromises our key policies,” Aziz said, referencing US demands on areas like government procurement, halal standards, digital taxation, and medical regulation.
Internal Crises Add Pressure
Beyond trade, ASEAN is also grappling with internal challenges, including Myanmar’s ongoing civil war and a territorial dispute between Thailand and Cambodia.
Following the foreign ministers’ meeting, ASEAN will engage in back-to-back sessions with its key global partners—including the US, China, India, Russia, Japan, and the EU. Among the most anticipated visits is that of US Secretary of State Marco Rubio, who is making his first trip to Asia in this role after cancelling prior stops in Japan and South Korea.
Balancing Global Forces
Analysts believe these meetings will be a test of ASEAN’s ability to uphold its independent, rules-based trade stance amid mounting global pressures. While the US remains a critical security and economic ally, there is growing scrutiny over ASEAN’s simultaneous deepening of economic ties with China.
“The US wants ASEAN to stop leveraging its military protection while expanding trade with Beijing,” said Collins Chong Yew Keat, an international strategy expert from Universiti Malaya.
Despite the tension, Anwar emphasized that ASEAN must avoid becoming a pawn in great power politics.
“We must be among those who choose rules—even when others choose retreat,” he said, reiterating his call for stronger intra-ASEAN trade and reduced dependency on external powers.
