KUALA LUMPUR: The imposition of United States’ (US) tariffs and the potential for retaliatory measures could lead to heightened volatility in capital flows and exchange rates, according to a joint statement of the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM).
The regional bloc said it is closely monitoring these developments and stands ready to take appropriate measures to address any volatility, should the need arise.
“The region is expected to remain resilient amid ongoing external headwinds. However, we express concern over the recent announcement of additional tariffs by the US and their potential impact on our economies.
“With ASEAN members’ economic openness and reliance on external trade, factors such as slower global growth, a contraction of international trade and reduced investment flows could adversely impact the region’s growth outlook,” the statement said.
According to the joint statement, ASEAN has also reaffirmed its commitment to an open, inclusive and rules-based multilateral trading system, as well as to advancing the region’s economic integration, amid rising global trade tensions.
The regional bloc said it remains ready to work constructively with all partners, including the US, to identify balanced and forward-looking solutions that contribute to a more resilient and sustainable global economy.
ASEAN also underscored its position not to impose any retaliatory measures in response to the tariffs introduced by the US.
Amid heightened global uncertainty, the group reiterated its commitment to strengthening financial resilience and accelerating financial integration within the region, to support deeper intra-ASEAN trade and investment.
“We call upon international financial institutions to give greater prominence to the risks that elevated tariffs pose to the global economy and to advise their members on appropriate policy tools to navigate the risks,” the statement said.
