Jakarta. Members of the regional economic bloc ASEAN agreed on Thursday not to take retaliatory measures against the sweeping “reciprocal” tariffs imposed by US President Donald Trump and instead will engage in “constructive dialogs” with Washington on the issue.

All ASEAN members but Singapore are subject to higher than the US baseline 10 percent tariff as the Trump administration seeks to slash the US trade deficit with the rest of the world.

The bloc’s economic ministers held an emergency meeting earlier in the day to express concerns over “the recent introduction of unilateral tariffs by the US” and formulate a collective response to the tariff hikes, which they said will “affect livelihoods of millions of people in the region, and hinder economic progress in ASEAN.”

ASEAN is currently the US's fifth-largest trading partner while the US is ASEAN’s largest FDI source and second-largest trading partner.

“The unprecedented imposition of tariffs by the US will disrupt regional and global trade and investment flows, as well as supply chains, affecting businesses and consumers worldwide, including those of the US,” reads the joint statement issued after the virtual meeting of economic ministers.

However, the ministers also acknowledged the US as a “longstanding and valued economic partner” that has played a significant role in promoting peace, stability, economic growth, investment, and trade in the region.
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“In light of these developments, we express our common intention to engage in a frank and constructive dialogue with the US to address trade-related concerns. Open communication and collaboration will be crucial to ensuring a balanced and sustainable relationship. In that spirit, ASEAN commits to not impose any retaliatory measures in response to the US tariffs,” the statement reads. 

The ministers also urged a “predictable, transparent, free, fair, inclusive, sustainable, and rules-based multilateral trading system” with the World Trade Organization (WTO) at its core.  

“In response to the economic repercussions that may arise, we will continue to work together more closely, with greater unity and solidarity, and remain committed to ASEAN’s rule-based trade,” it said.

Indonesia sent Trade Minister Budi Santoso to the Special ASEAN Economic Minister Meeting.