Even as they face among the most punitive tariffs globally, the US secretary of state, Marco Rubio, has sought to reassure south-east Asian countries of Washington’s commitment to the region, saying they may get “better” trade deals than the rest of the world.
In his first official visit to Asia, Rubio met the foreign ministers of the 10-member Association of Southeast Asian Nations (Asean) in Malaysia on Thursday, telling his counterparts that the US had “no intention of abandoning” the region.
His visit came days after Donald Trump renewed his threat to impose severe tariffson many south-east 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 would 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 south-east Asia are going to have tariff rates that are actually better than countries in other parts of the world,” Rubio said.
Before Rubio’s arrival in Kuala Lumpur, the Malaysian prime minister, Anwar Ibrahim, condemned the tariffs, saying the levies were 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”, Anwar said.
The looming tariffs have cast a shadow over Rubio’s trip, even as he sought to underline the importance of south-east Asia to the US.
“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.
In a joint communique on Friday, Asean foreign ministers condemned unilateral tariffs as “counterproductive and risk exacerbating global economic fragmentation”, though they did not mention the US directly.
Stephen Olson, a visiting senior fellow at ISEAS – Yusof Ishak Institute in Singapore, said Rubio had the unenviable position of trying to reassure south-east Asian partners that US continued to be committed to the region and to free and open trade relations when all the evidence pointed to the opposite.
“Asean ministers will give him a polite and respectful reception but are unlikely to be fundamentally persuaded by anything he says,” added Olson.
Rubio had his first in-person talks with the Chinese foreign minister, Wang Yi, at the gathering on Friday, which he described as “positive and constructive”, though he stressed their meeting was not a negotiation.
Questions over Washington’s commitment to the region coupled with Trump’s unpredictable economic polices could be a boon for China.
At the same gathering, China and Asean, which is China’s largest trading partner, completed negotiations to further refine their free trade area to include additional industries.
In meetings with Asean countries, Wang sought to draw a contrast between Washington and Beijing – presenting China as a reliable partner interested in mutual development.
During a meeting with Cambodia’s deputy prime minister, Prak Sokhonn, he said the US levies were “an attempt to deprive all parties of their legitimate right to development”.
“In the face of turbulent global situation, China is willing to be Cambodia’s trustworthy and reliable friend and partner,” Wang added.
Wang told his Thai counterpart, Maris Sangiampongsa, the US was “abusing tariffs, wrecking the free trade system and disrupting the stability of the global supply chain”, according the Chinese foreign ministry.
In another sign of the economic recalibration, the 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.
South-east Asian countries have rushed to offer concessions to Trump to avert the tariffs, which could devastate economic growth.
Levies loom over eight out of 10 Asean member states, 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, growth in gross domestic product 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 (£34bn) trade surplus with the US by 70% within five years and eliminate the imbalance within eight years.
Officials in Indonesia, south-east 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
