Jakarta, 11 August 2025: ERIA and the ASEAN Business Advisory Council (ABAC) organised the ASEAN Business Dialogue on US Trade Policy under the theme ‘Adapting to Tariff Uncertainty.’ The forum brought together government officials, business leaders, and experts to discuss how ASEAN can strengthen its resilience and competitiveness amidst the shift of global trade dynamics.

Dr Dionisius Narjoko, Senior Economist at ERIA, and Ms Anna Robeniol, Senior Policy Fellow at ERIA, moderated the discussions, facilitating dialogue between the public and private sectors on ASEAN’s policy and business responses to the US tariff measures.

In his opening remarks, H.E. Liew Chin Tong, Malaysia’s Deputy Minister of Investment, Trade, and Industry, underscored that ASEAN must chart its own course amidst the shifting global dynamics by strengthening co-operation, technology, and innovation. H.E. Tan Sri Nazir Razak, Chair of ABAC Malaysia, called for practical and coordinated action, stressing that ASEAN must move from discussion to execution.

Mr Tetsuya Watanabe, President of ERIA, also highlighted the global ‘polycrisis’ and the shifting economic power towards ASEAN and the Global South. To increase regional resilience, ASEAN must focus on not only enhancing production capacity, but also on growing its middle class and boosting intra-regional demand. President Watanabe called for a new, innovation-driven integration strategy supported by advanced technologies, stronger R&D, improved connectivity, and harmonised standards to enable talent and ideas to move across the region. He emphasised the need for collaboration with the private sector to ensure that policies are practical and responsive, while reaffirming ERIA’s commitment to co-creating this vision alongside the business community and policymakers.

H.E. Mari Elka Pangestu, representing the ASEAN Geo-Economics Task Force, highlighted that domestic reforms and effective implementation remain key to mitigating global shocks. Strengthening the Regional Comprehensive Economic Partnership (RCEP) can help buffer the impact of US tariffs.

The first session explored the impact of tariffs on ASEAN’s industries, particularly in manufacturing and semiconductors. Businesses are adapting through market diversification, innovation, and skills investment. The discussions also underscored the importance of vocational training and labour mobility to support industrial resilience.

The second session focused on collective regional responses, including regulatory reforms, reductions in non-tariff barriers, and enhancements in supply chain integration. Participants viewed the ASEAN Business Entity (ABE) as a potential platform to deepen collaboration and harmonise business practices.

The dialogue concluded with a shared commitment to strengthening cooperation, aligning industrial and trade policies, and ensuring that ASEAN remains united and resilient amidst the global uncertainty.