Rubio in bind as he seeks to reassure Asia, even as region faces punishing Trump tariffs
Rubio in bind as he seeks to reassure Asia, even as region faces punishing Trump tariffs

Rubio in bind as he seeks to reassure Asia, even as region faces punishing Trump tariffs

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Rubio in bind as he seeks to reassure Asia, even as region faces punishing Trump tariffs

Marco Rubio tells Asean nations the US has ‘no intention of abandoning’ the region. Visit comes days after president Donald Trump renewed his threat to impose severe tariffs across many southeast Asian countries if they did not strike deals by 1 August. The region, which includes countries that rely on exports and manufacturing, has been among the worst hit by Trump’s trade war. Malaysian prime minister Anwar Ibrahim condemned the tariffs, saying the trade war was not a “passing storm’ but instead “the new weather of our time’. Chinese foreign minister Wang Yi appeared to draw a contrast between Washington and Beijing – presenting China as a reliable partner interested in mutual development. China and Aseans completed negotiations to further refine their free trade area to include additional industries. Trump with Vietnam is seen by analysts as a sign he will use tariff negotiations to try to pressure countries to cut from their supply chains to avert the tariffs. Thailand, Malaysia, Laos, Myanmar, Cambodia, the Philippines and Indonesia were sent letters this week warning they will face tariffs ranging from 20-40% – levies that Rubio said were being discussed.

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Even as they face among the most punitive tariffs globally, US secretary of state Marco Rubio has sought to reassure southeast Asian nations of Washington’s commitment to the region, saying countries there may get “better” trade deals than the rest of the world.

In his first official visit to Asia, Rubio met foreign ministers of the 10-member Association of Southeast Asian Nations (Asean) in Malaysia on Thursday, telling his counterparts the US has “no intention of abandoning” the region.

His visit came days after president Donald Trump renewed his threat to impose severe tariffs across many southeast Asian countries if they did not strike deals by 1 August.

The region, which includes countries that rely on exports and manufacturing, has been among the worst hit by Trump’s trade war.

Thailand, Malaysia, Laos, Myanmar, Cambodia, the Philippines and Indonesia were sent letters this week warning they will face tariffs ranging from 20-40% – levies that Rubio said were being discussed with Asean countries.

“I would say that when all is said and done, many of the countries in Southeast Asia are going to have tariff rates that are actually better than countries in other parts of the world,” Rubio said.

View image in fullscreen Marco Rubio meets with Malaysia’s prime minister Anwar Ibrahim. Photograph: Mandel Ngan/Reuters

Prior to Rubio’s arrival in Kuala Lumpur, Malaysian prime minister Anwar Ibrahim condemned the tariffs, saying the trade war was not a “passing storm” but instead “the new weather of our time”.

Tools once used to generate growth were now being “wielded to pressure, isolate and contain”, he said.

The looming tariffs have cast a shadow over Rubio’s trip, even as he sought to underline the importance of southeast Asia to Washington.

“It is our view, our strong view, and the reality that this century and the next, the story of the next 50 years, will largely be written here in this region, in this part of the world,” he said.

Stephen Olson, visiting senior fellow at ISEAS – Yusof Ishak Institute in Singapore, said Rubio had “the unenviable position of trying to reassure southeast Asian partners that [the] US continues to be committed to the region and to free and open trade relations when all the evidence points in the opposite direction.”

“Asean ministers will give him a polite and respectful reception but are unlikely to be fundamentally persuaded by anything he says,” added Olson.

Questions over Washington’s commitment to the region coupled with Trump’s unpredictable economic polices could be a boon for China.

At the same meeting China and Asean, which is China’s largest trading partner, completed negotiations to further refine their free trade area to include additional industries.

View image in fullscreen Representatives attending the Asean foreign ministers meeting. Photograph: Xinhua/Shutterstock

And in veiled comments, Chinese foreign minister Wang Yi appeared to draw a contrast between Washington and Beijing – presenting China as a reliable partner interested in mutual development.

Without naming the US directly, he criticised Trump’s tariffs, highlighting “unilateral protectionism and the abuse of tariffs by a certain major country”.

In another sign of the economic recalibration, Japanese prime minister Shigeru Ishiba told a television news programme that Japan needed to wean itself from US dependence in key areas.

“If they think Japan ought to follow what America says as we depend heavily on them, then we need to work to become more self-sufficient in security, energy and food, and less dependent on America,” he said.

Vietnam is the only Asian country, and the second globally, to reach a trade deal with the US. Under the agreement many goods will face a tariff of 20% but a 40% levy will remain for so-called transshipments – a provision that is aimed at Chinese companies accused of passing their products through Vietnam to avoid tariffs.

Trump’s agreement with Vietnam is seen by analysts as a sign he will use tariff negotiations to try to pressure countries to cut China from their supply chains.

Southeast Asian nations have rushed to offer concessions to Trump to avert the tariffs, which could devastate economic growth.

Levies loom over eight out of 10 Asean nations, including a tariff of 20% on the Philippines, 25% on Malaysia and Brunei, 32% on Indonesia, and 36% on Cambodia and Thailand. Laos and Myanmar, a country gripped by civil war, continue to face among the most severe tariffs globally, with a 40% levy.

In Thailand, if the government is unable to avert the 36% rate, GDP growth is expected to drop below 1% this year, according to analysis by the Eurasia Group, a political risk consultancy.

Bangkok has pledged to reduce its $46bn trade surplus with the US by 70% within five years and eliminate the imbalance within eight years.

Officials in Indonesia, Southeast Asia’s largest economy, were also reportedly shocked by the letters sent by the US, which came despite a recent pledge to increase imports from the US by $34bn.

With agencies

Source: Theguardian.com | View original article

Asean leaders meet China Premier Li and Gulf state dignitaries to bolster ties

Leaders of Asean, the Gulf Cooperation Council and Chinese Premier Li Qiang meeting for talks in Kuala Lumpur, on May 27. US President Donald Trump blew up global trade norms in April when he announced a slew of punishing levies targeting countries around the world, including US allies. The experience has spurred ASEan to accelerate efforts to diversify its trading networks. Malaysia holds the rotating chairmanship and opened the bloc’s 46th summit on May 26, and is the main force behind the initiative. China will join later in the day, with most of the topics relating to trade to be covered in the meeting, with the Philippines willing to bear the brunt of the pressure, Malaysian Prime Minister Anwar Ibrahim said in a post on his Facebook page on May 25. The Philippines leader Ferdinand Marcos said there was an “urgent need’ to adopt a legally binding code of conduct in the South China Sea, with China and the Philippines having engaged in territorial disputes in the area. The meeting is the inaugural summit between Aseans, China and GCC.

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Leaders of Asean, the Gulf Cooperation Council and Chinese Premier Li Qiang meeting for talks in Kuala Lumpur, on May 27.

KUALA LUMPUR – South-east Asian leaders are looking to insulate their trade-dependent economies from geopolitical uncertainty, in particular US tariffs, as they hold talks with Chinese Premier Li Qiang and Gulf state dignitaries in Kuala Lumpur on May 27.

US President Donald Trump blew up global trade norms in April when he announced a slew of punishing levies targeting countries around the world, including US allies.

Though he subsequently instigated a 90-day pause for most, the experience has spurred Asean to accelerate efforts to diversify its trading networks.

“A transition in the geopolitical order is underway,” Malaysian Prime Minister Anwar Ibrahim said on May 26.

After a lavish gala dinner the night before, May 27 sees the inaugural summit between Asean, China and the Gulf Cooperation Council (GCC) – a regional bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Asean has traditionally served as “a middleman of sorts” between developed economies like the United States, and China, said Associate Professor Chong Ja Ian from the National University of Singapore.

With Washington looking unreliable these days, “Asean member states are looking to diversify”, he said.

“Facilitating exchanges between the Gulf and People’s Republic of China is one aspect of this diversification.”

Malaysia, which holds Asean’s rotating chairmanship and opened the bloc’s 46th summit on May 26, is the main force behind the initiative, Prof Chong said.

Opening the Asean-GCC meeting on May 27 – China will join later in the day – Mr Anwar said the two blocs had “the means and responsibility to rise as anchors of stability and engines for future growth”.

‘Timely and calculated’

Beijing, which has suffered the brunt of Trump’s tariffs, is also looking to shore up its other markets.

Its foreign ministry said on May 26 it “look(ed) forward to strengthening cooperation” with Asean and the GCC.

China and Asean are already each other’s largest trading partners, and Chinese exports to Thailand, Indonesia and Vietnam surged by double digits in April – attributed to a re-routing of US-bound goods.

Premier Li’s participation is “both timely and calculated”, Associate Professor Khoo Ying Hooi from the University of Malaya told AFP.

“China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.”

Beijing and Washington engaged in an escalating flurry of tit-for-tat levies until a meeting in Switzerland saw an agreement to slash them for 90 days.

Chinese goods still face higher tariffs than most though.

According to a draft statement seen by AFP, Asean will express “deep concern… over the imposition of unilateral tariff measures”.

But it said earlier in 2025 it would not impose retaliatory duties.

Treacherous waters

Asean as a body has historically avoided choosing a side between the US and China.

China is only South-east Asia’s fourth-largest source of foreign direct investment, after the United States, Japan and the European Union, noted NUS’ Prof Chong.

Mr Anwar said on May 26 he had written to request an Asean-US summit in 2025, with his foreign minister saying Washington had not yet responded.

Yet any closer alignment with Beijing presents problems of its own, despite Datuk Seri Anwar’s insistence on May 26 night that “whatever is being said… we are here as a friend of China”.

On May 26, Philippines leader Ferdinand Marcos said there was an “urgent need” to adopt a legally binding code of conduct in the South China Sea.

Beijing has territorial disputes with five Asean member states in the area, with China and the Philippines having engaged in months of confrontations in the contested waters.

Mr Anwar raised the South China Sea with Mr Li, the Malaysian Prime Minister said in a May 27 Facebook post announcing the one-on-one meeting.

He also told Mr Li that Asean “appreciates China’s dedication to regional collaboration”, with most of the topics covered relating to trade.

“Other disputants… are perhaps willing to let the Philippines bear the brunt of pressure,” said Prof Chong.

Tension between Manila and Beijing “means that these issues will not fade into the background, much as some other South-east Asian states wish to focus on economic issues”, he added. AFP

Source: Straitstimes.com | View original article

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