Trump tariffs could hit ASEAN economies hard, with potential political price for leaders
The chilling effect of United States President Donald Trump’s sweeping new tariffs on economic growth in Southeast Asia’s key economies is expected to pose stern tests for these countries, say analysts.
Some governments have already stated their intention to negotiate deals with the Trump administration in return for lower tariffs. But should this fail, they may also need to roll out a slew of fiscal measures to cushion the impact on their people, experts caution.
The leaders of Indonesia, Malaysia, Thailand and Vietnam have pinpointed steady economic growth as a key priority during their terms in government. As economists slash growth forecasts, all eyes will be on how they react to maintain domestic political stability.
Malaysia, as the current chair of the Association of Southeast Asian Nations (ASEAN), is coordinating a response with other regional leaders “to engage constructively” with the US.
Putrajaya will also chair a special ASEAN Economic Ministers’ meeting on Thursday (Apr 10) to address the impact of newly imposed US tariffs on regional trade and investment and to coordinate a collective response.
