Mahathir Urges ASEAN to Strengthen Ties with China and India Amid US Tariff Impact

International International News

Posted by NewAdmin on 2025-06-03 09:03:12 |

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Former Malaysian Prime Minister Mahathir Mohamad has called on Southeast Asian nations to enhance trade relations with China and India, suggesting that closer economic ties with these Asian powers could help mitigate the effects of steep tariffs imposed by the United States. Speaking to Nikkei Asia during the Future of Asia forum in Tokyo, Mahathir emphasized that Malaysia and other ASEAN countries should reduce their reliance on American trade by expanding partnerships with China and India. He noted that Malaysia already trades more with China than with the United States, and highlighted significant untapped potential in trade with India.

This call comes amid ongoing economic disruption in Southeast Asia caused by US tariffs introduced during former President Donald Trump’s administration. These tariffs, ranging from 10 to 49 percent, have adversely affected six of the ten ASEAN member states. The region's ability to meet its projected growth rate of 4.7 percent for the year is now under pressure. Although the US recently announced a 90-day tariff pause, countries like Malaysia, Vietnam, Indonesia, and Thailand have been forced to enter into negotiations with Washington to soften the economic impact.

In addition to Mahathir’s remarks, Malaysia’s Foreign Minister Mohamad Hassan has echoed the call for stronger regional integration within ASEAN. Speaking on behalf of the Malaysian government, he stressed the need for ASEAN members to deepen their economic ties to reduce vulnerability to external shocks. Hassan pointed out that the ongoing trade issues with the US should serve as a wake-up call for ASEAN to enhance intra-regional cooperation.

In response to the economic strain, ASEAN has already begun expanding its trade relationships, particularly with China and the Persian Gulf countries. A recent trilateral summit in Kuala Lumpur marked a milestone in ASEAN’s evolving trade policy, with trade between ASEAN, China, and the Gulf Cooperation Council (GCC) reaching over \$900 billion last year, significantly outpacing the \$453 billion ASEAN traded with the US.

As the current chair of ASEAN, Malaysia has also requested a special summit with the United States to address trade concerns, hoping to reach a more stable and mutually beneficial agreement. Meanwhile, Mahathir expressed confidence in China’s rise as a global superpower, stating that the United States is unlikely to regain its former dominance given its domestic challenges. He predicted that China is poised to become the world’s leading economic power, a transformation that ASEAN nations should recognize and strategically align with.

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