Asean leaders seek new trade deals amid US tariffs

[WORLD] Southeast Asian leaders are gathering in Malaysia on Monday for a pivotal summit aimed at securing new trade partnerships, as looming US tariffs pose a serious threat to the region’s export-driven economies. The two-day ASEAN summit in Kuala Lumpur is also expected to ramp up diplomatic pressure on Myanmar’s military regime and address East Timor’s long-pending bid to join the regional bloc.

The meeting comes at a time when economic growth across Southeast Asia has been shaken by US President Donald Trump’s tariff threats. Duties of up to 49 percent could be levied on ASEAN member states unless new trade agreements are secured ahead of a July deadline. The potential economic fallout has raised alarms throughout the region, particularly in nations such as Vietnam, Malaysia, and Thailand, where manufacturing sectors are heavily reliant on exports to the US.

In anticipation of the tariff impact, ASEAN countries are intensifying efforts to diversify their trade relationships. Greater engagement with emerging markets like China and India is seen as a strategic pivot, tapping into their expanding economies and vast consumer bases. Strengthening intra-regional trade is also high on the agenda as member states seek to reduce their dependence on US markets.

The summit takes place against the backdrop of rising tensions in the South China Sea. Longstanding maritime disputes involving China have prompted ASEAN nations to pursue a more cohesive stance to safeguard their territorial interests. Talks on the Code of Conduct, aimed at preventing conflicts in the contested waters, are expected to feature prominently in the summit discussions.

Another focal point is the escalating humanitarian crisis in Myanmar. The junta’s continued crackdown on the Rohingya minority has drawn widespread international condemnation, and ASEAN leaders face growing calls to take stronger action. While the bloc’s traditional policy of non-interference has limited its response, the severity of the crisis may compel a reassessment of that principle.

East Timor’s application for ASEAN membership is also back in the spotlight. While the country’s inclusion is viewed as a move towards deeper regional integration and development, questions remain over its readiness to meet ASEAN’s criteria. Leaders are expected to outline a clearer path forward on East Timor’s accession during the summit.

Beyond geopolitical and economic concerns, the summit offers a platform to address shared domestic challenges such as income inequality, infrastructure gaps, and environmental sustainability. By exchanging policy insights and fostering collaboration, ASEAN members aim to build a more inclusive and resilient region.

Innovation and technology are also high on the agenda, as Southeast Asia’s digital economy continues to gain momentum. Leaders are expected to spotlight initiatives that support digital infrastructure and e-commerce, positioning these sectors as engines of future growth and regional connectivity.