The Association of Southeast Asian Nations (ASEAN) has issued a unified response to the growing wave of trade protectionism and economic instability triggered by the sweeping tariffs introduced by the Trump administration.
In early April, the United States implemented broad tariffs covering the majority of imported goods, imposing significantly higher duties on products from both allies and adversaries. Shortly after, President Donald Trump announced a temporary 90-day pause on some of these new tariffs, while simultaneously increasing levies on Chinese imports.
By mid-April, the U.S. escalated its trade stance by introducing tariffs of up to 245% on Chinese goods in response to Beijing’s retaliatory measures. Despite the growing trade tensions, ASEAN chose not to engage in retaliatory tariffs, opting instead for constructive dialogue and a proactive approach to address emerging global challenges.
Following the 28th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting in Milan, the bloc released a joint statement on Sunday warning that the rising trend of trade protectionism poses a serious threat to Southeast Asia’s trade and economic stability.
“Protectionist policies are undermining global trade, fragmenting the economy, and disrupting trade, investment, and capital flows throughout the region,” ASEAN stated.
The group also highlighted other near-term risks, such as tighter global financial conditions, slowdowns among major trading partners, and declining investment inflows, which could further dampen the region’s economic prospects.
In response, ASEAN called for stronger regional cooperation and unity, emphasizing the need to maintain economic resilience while adapting quickly to short-term challenges.
“On fiscal matters, this involves rebuilding policy buffers while delivering targeted support to sustain growth and pressing ahead with structural reforms,” the statement said. “Monetary policies will be carefully adjusted according to domestic conditions.”
The bloc reaffirmed its support for multilateralism and a fair, transparent global trading system based on rules and inclusivity. It urged international institutions to defend multilateralism, encourage free trade, assess the global impact of ongoing trade tensions, and provide policy guidance to mitigate adverse effects.
Trump’s aggressive tariff strategy is increasingly disrupting the global economy, which for decades has operated on relatively open and predictable trade flows.
The uncertainty has already prompted multinational corporations and small e-commerce firms alike to slash revenue forecasts, consider layoffs, and rethink business strategies. At the same time, major economies have revised their growth outlooks downward amid discouraging economic indicators.
“U.S. tariff policy represents a major short-term shock to the global economy,” said Isabelle Mateos y Lago, chief economist at BNP Paribas. “The endgame of these U.S. tariffs could be further away—and more severe—than previously anticipated,” she added, referencing the current 10% baseline on most imports.
