Economy ASEAN Stays Firm on Diplomacy Amid US Tariff Pressures

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Picture courtesy of ASEAN

 

In the face of rising US tariff threats, ASEAN has resolutely chosen diplomacy over retaliation, aiming to sustain strong trade ties with the US, its second-largest trading partner. This decisive stance was articulated by Commerce Minister Pichai Naripthaphan following a virtual summit of ASEAN economic ministers, including Timor-Leste, held to address recent US trade measures announced on April 5.

 

Minister Pichai emphasized ASEAN’s commitment to dialogue and maintaining multilateral relations, underscoring the bloc's dedication to keeping regional supply chains intact and shielding small to medium enterprises from potential trade conflict fallout. "The focus is on dialogue, not division," he affirmed.

 

The summit concluded with a joint statement reinforcing ASEAN's role as a "comprehensive strategic partner" of the US, seeking "balanced, long-term solutions" through the ASEAN-US Strategic Trade and Investment Partnership. To further this initiative, ASEAN established a new Geoeconomics Task Force to monitor US economic policies, offer strategic advice, and enhance public-private sector collaboration.

 

ASEAN also sees potential in future cooperation with the US in emerging sectors like artificial intelligence, digital technologies, electric vehicles, semiconductors, renewable energy, and sustainable food systems, recognizing these as growth drivers for the region.

 

 

 

Encouragingly, ongoing talks with US Trade Representative Jamieson Greer are progressing well, with plans for a formal meeting underway. These efforts align with Prime Minister Paetongtarn Shinawatra’s vision to amplify Thailand’s role as a key US trade ally.

 

Anticipating tariff negotiations, Thailand stands to benefit from a temporary 90-day tariff relief offered by Washington to nations willing to engage in deal-making. In 2024, US-ASEAN trade amounted to a substantial US$477 billion, with Thailand contributing US$74.5 billion, including a US$35.4 billion trade surplus in Bangkok’s favor. Thailand’s primary exports to the US comprise electronics, garments, rubber products, and machinery, while importing American vehicles, agricultural products, electrical components, and textiles.

 

With global trade dynamics shifting, ASEAN is steering a steady course through economic uncertainty, placing diplomacy and cooperative dialogue at the forefront of its strategy, ensuring that trade relations with the US remain robust and beneficial for all parties involved.

 

 

  Adapted by ASEAN Now from The Thaiger 2025-04-25