KUALA LUMPUR: The United States (US) has dismissed concerns that its newly announced global tariffs could alienate ASEAN partners, reiterating that the measures are necessary to address long-standing trade imbalances.
US Secretary of State Marco Rubio said the tariffs, which will take effect on August 1, are part of a broader strategy to tackle unsustainable trade deficits accumulated over the past two to three decades with countries worldwide, including the European Union (EU), Canada, Mexico and Asia.
“No, I am not concerned about that. It’s not going to happen because these tariffs are being applied on a global scale. They are not (specifically) aimed at one country or one region,“ Rubio told reporters when asked if the policy could backfire against the US position in Southeast Asia and also alienate ASEAN member countries.
He was speaking on the sidelines of the 58th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings, which entered its final day here today.
He said that for 20 or 30 years, the US has built up enormous trade deficits with multiple countries around the world, and that is what President Donald Trump is addressing.
Rubio reiterated that the tariffs will begin as scheduled but did not rule out the possibility of reaching new arrangements with individual countries that could adjust the tariffs positively in the future.
“The tariffs that he (Trump) announced will take effect on August 1 because markets need certainty. But there is always the possibility that, either before or after that date, we may reach arrangements with individual countries that positively revise those numbers.
“By and large, this is not aimed at any one country. It is a global policy, applying to virtually every nation, because the trade deficit the US was running with too many countries is simply unsustainable. We had to address it,“ he said.
On Monday, Washington announced a 25 per cent tariff on all Malaysian products entering the US, separate from existing sectoral tariffs. This new rate, which takes effect on August 1, marks an increase from the previous tariff rate of 24 per cent. Brunei will also face a 25 per cent tariff.
Other ASEAN member states have also been affected, with Indonesia facing a 32 per cent tariff, the Philippines 20 per cent, and both Thailand and Cambodia 36 per cent. Laos and Myanmar have each been subjected to a 40 per cent tariff.
Vietnamese exports will be subject to a 20 per cent tariff, while Singapore remains under a base tariff of 10 per cent. – Bernama
