“It's necessary to synchronize between ASEAN countries because all 10 ASEAN countries are affected by the US reciprocal tariff policy, so it is necessary to collectively build communication and engagement with the U.S. government.”

This is a statement from Indonesia’s Coordinating Economic Minister, Airlangga Hartarto during his visit to Malaysia few days after the announcement of “Liberation Day” Tariffs by the US President Donald Trump. ASEAN countries are among those countries receiving the threat of high “reciprocal tariff” rate from the US. These unilateral actions threatened market access to one important market for products from the region, and sparked concerns over supply chain disruption and economic uncertainty.

Recognizing the gravity of the situation, just a week after the announcement ASEAN Economic Ministers issued a joint ministerial statement affirming its commitment to open, operational trade, dispute resolution through multilateral frameworks, and coordination in response to external economic shocks.2 While this statement shows aspirations to collectively responding to the trade and geoeconomic dynamics, it fell short on its realization.

The reality however is different. Differences in the US market exposure, with countries like Cambodia and Vietnam whose over 30% of their export are directed to the US market, and Singapore and the Philippines that have more diversified trade profiles, have already led to varied diplomatic approaches. Those include bilateral negotiations with the US from some ASEAN member countries: Vietnam, Indonesia, Cambodia, Thailand, Malaysia and Philippines.

This policy note encourages ASEAN member states to make their collective response operationalize by identifying and coordinating key policy areas that emerging in negotiations with the United States. In particular, this note highlights the importance of aligning critical elements of the negotiations such as tariffs, non-tariff barriers, rules of origin, and other trade-related regulatory standards, especially to multilateral trading principles under the WTO. Greater alignment on these issues will help ASEAN present a more strategic response, ensuring that national interests are better safeguarded within a regional framework.

Recently, Trump announced a plan to implement reciprocal tariffs starting on August 1 for several partners, including Malaysia, Thailand, Cambodia, and Indonesia; countries that have already begun bilateral negotiations with the US.3 This shows that ASEAN should not have entered negotiations with the US individually. It highlights the importance of adopting a harmonized approach toward the US and other partners, as well as the need to strengthen ASEAN’s integration.