Asean summit opens in Malaysia with trade dismay, US tariffs top of mind

Southeast Asian leaders are meeting in Malaysia on Monday seeking trade deals with new partners as US tariffs threaten unprecedented damage to their export-reliant economies.

The two-day Asean summit in Kuala Lumpur is also expected to increase pressure on Myanmar’s military junta and attempt to resolve issues with East Timor’s application to join the bloc.

It comes as growth across the region has taken a hit from US President Donald Trump’s threatened tariffs, with levies of up to 49 per cent set to be imposed on member states unless they can make deals before a July deadline.

The tariff upheaval has pushed the 10-member Association of Southeast Asian Nations to pursue trade deals with non-US partners and increase intra-bloc trade and business cooperation.

Malaysian Prime Minister Anwar Ibrahim on Monday lamented that the very foundations of free trade were being “dismantled under the force of arbitrary action”.

But he added in his opening remarks at the summit that he believed in “the fortitude and staying power of Asean to withstand the headwinds and weather the storms of the challenges and uncertainties facing us.”