ASEAN fears US tariffs of 19-40% will pressure trade negotiations, risking Vietnam losing $25,000 billion

ASEAN is concerned about US tariffs of 19-40%, putting pressure on trade negotiations in Kuala Lumpur. The UNDP estimates that Vietnam could lose $25,000 billion in export revenue, risking the need for ASEAN to join hands and establish a common stance.

On September 24, 2025, at 9:40 AM, Reuters reported that a trade and investment meeting between U.S. Trade Representative Jamieson Greer and ASEAN economic ministers, held Wednesday in Kuala Lumpur, Malaysia, was being closely watched due to the heavy burden of U.S. tariffs imposed on Southeast Asian countries.

ASEAN countries rely heavily on exports to drive economic growth and are concerned about the impact of US tariffs, which are set at 19–20% for most countries in the region, with Laos and Myanmar facing tariffs as high as 40% and Singapore at 10%.

Malaysian Trade Minister Tengku Zafrul Aziz, and host of the meeting, said, “We are not yet sure whether the issue of tariffs will be raised, but the fact that all ASEAN economic ministers are here to talk with the United States, and that the US Trade Representative is also here, shows that both sides value trade and investment relations, which is the most important thing.”

A report by the United Nations Development Programme (UNDP) indicates that Vietnam, the sixth-largest exporter to the United States, could lose up to $25 billion in export revenue annually due to the 20% tariff, making it the most affected country in the region.

In the past, ASEAN has chosen to negotiate separately with the United States on a country-by-country basis. However, the risk of potentially harsher sectoral tariffs may force ASEAN to come together to negotiate a common position, particularly in the semiconductor industry, a key economic sector for Thailand, Malaysia, and Vietnam.

US President Donald Trump said last month he would impose tariffs of up to 100% on semiconductors, but would not apply to companies with manufacturing bases in the US or plans to invest in domestic production.

Reference: www.reuters.com

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