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Strengthen Regional Ties, Boost Investment To Counter US Tariff Impact, ESCAP Chief Tells ASEAN


Kuala Lumpur: The head of a key intergovernmental platform in the Asia-Pacific has urged Southeast Asian economies to strengthen regional cooperation and boost investment to cushion against the fallout from US President Donald Trump’s move to impose steep tariffs on imports from China, Canada, and Mexico.



According to BERNAMA News Agency, Under-Secretary-General of the United Nations Armida Salsiah Alisjahbana emphasized the importance of ASEAN building a stronger, more resilient trade network by deepening regional integration amidst economic uncertainty from US tariffs. Alisjahbana, who also serves as Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), highlighted that UN bodies were closely monitoring the impact of the recently imposed tariffs on regional economies, including ASEAN.



ESCAP, recognized as the largest UN body promoting regional development in the Asia-Pacific, counts ASEAN and Malaysia among its members. Alisjahbana suggested that US tariffs, alongside Washington’s broader trade policies such as levies on steel and aluminium imports, could potentially burden the economies of America’s trading partners.



Economists have expressed concerns that President Trump’s executive orders imposing tariffs of up to 25 per cent on imports could adversely affect China, thereby impacting ASEAN, whose economies are intricately linked to the Asian superpower. Alisjahbana recommended that ASEAN enhance intra-regional trade, sustainable investment, and digital connectivity instead of relying solely on external markets.



Alisjahbana urged ASEAN nations to proactively diversify trade partnerships and promote open, fair, and rules-based economic policies in light of persistent global economic uncertainty. She pointed out that ESCAP is vigilantly observing the evolving US trade policy, particularly its increased reliance on tariffs and bilateral agreements, which could have significant implications for global trade and investment.



Although Alisjahbana refrained from commenting on the policies of a specific country, she noted that there is considerable global attention on the US as it shifts its trade and investment stance towards more bilateral engagements, using tariffs and non-tariff measures as primary tools.



During her two-day visit to Malaysia from February 17-18, 2025, Alisjahbana met with Malaysian leaders including Prime Minister Datuk Seri Anwar Ibrahim, Foreign Minister Datuk Seri Mohamad Hasan, Housing and Local Government Minister Nga Kor Ming, and the Economy Ministry’s Deputy Secretary-General (Macro) Datuk V Valluvan to discuss regional issues. She acknowledged the growing concerns regarding the use of trade barriers and their potential to disrupt global supply chains.

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