Canada to Kuala Lumpur: Regional Answer to US Tariffs

          King Charles III and Queen Camilla after State                           Opening of Canadian Parliament

Canada to Kuala Lumpur: Regional Answer to US Tariffs

Deepak Razdan

29 May, 2025

King Charles III on Tuesday told the Canadian Parliament “every time I come to Canada - a little more of Canada seeps into my bloodstream – and from there straight to my heart.”

Not surprisingly, therefore, he knew the Canadians’ concerns, and said the system of open global trade that, while not perfect, had helped to deliver prosperity for Canadians for decades was changing. Canada’s relationships with partners were also changing.

But there was no cause for undue worry, the King said. The Government is working to strengthen its relationships with reliable trading partners and allies around the world, recognizing that Canada has what the world needs and the values the world respects, he said.

The Sovereign disclosed: “Canada is ready to build a coalition of like-minded countries that share its values; that believe in international co-operation and the free and open exchange of goods, services, and ideas.”

On Monday, the Association of Southeast Asian Nations (ASEAN) met in Kuala Lumpur for its 46th Summit “amidst rising global trade tensions” and reaffirmed “ASEAN’s commitment towards regional unity, economic stability and practical cooperation in navigating external challenges.”

The ASEAN leaders took note of the “continued rise in unilateral actions relating to tariffs and other trade and investment restrictions and the growing risk of global fragmentation.”

They stressed their “strongest resolve to stand together as ASEAN in safeguarding the region’s economic stability, resilience, and long-term growth trajectory.”

From Ottawa to Kuala Lumpur, there is either talk of fresh regional coalitions or strengthening of existing regional groups to counter US President Donald Trump’s trade tariffs system.

The world is struggling to negotiate trade deals with the US, but major economies and regional groups are simultaneously exploring if reliable regional trade systems, along with bilateral deals, could replace the dying global order.

The European Union (EU) is already a regional economic market, but it is negotiating with the US because Mr Trump threatened it with 50 per cent tariff and it has security worries because of the Ukraine-Russia war which it thinks the US can help it face.

In his speech in the Canadian Parliament, the King said Prime Minister Mark Carney and US President Donald Trump have begun defining a new economic and security relationship between Canada and the United States, rooted in mutual respect and founded on common interests, to deliver transformational benefits for both sovereign nations.

He asked the Canadians to cheer up as the world knew their unique identity and bravery. As their national anthem reminds all, the King said: “The True North is indeed strong and free!”

The King said many Canadians are feeling anxious and worried about the drastically changing world around them. Fundamental change is always unsettling. Yet this moment is also an incredible opportunity. An opportunity for renewal.

“An opportunity to think big and to act bigger. An opportunity for Canada to embark on the largest transformation of its economy since the Second World War,” he said.

The Government’s overarching goal – its core mission – is to build the strongest economy in the G7, he said. In this new, fast-evolving world, Canada is ready to lead. This will be demonstrated in June, when Canada convenes the G7 Summit.

Canada’s immigration system has long been a source of pride for Canadians and of dynamism for the economy, he said. The Government will cap the total number of temporary foreign workers and international students to less than five per cent of Canada’s population by 2027.

“By doing this, the Government will attract the best talent in the world to build our economy, while sending a clear message to Canadians working abroad that there is no better time to come home,” the King said.

The ASEAN members are big exporters -- Singapore, Malaysia, Indonesia, Philippines, Myanmar, Thailand, Brunei, Cambodia, Vietnam and Lao PDR – and they are worried about the US tariffs.

Current Chair of the ASEAN, Prime Minister of Malaysia Anwar Ibrahim said the Summit had noted with satisfaction that ASEAN continued to demonstrate economic resilience, achieving a growth rate of 4.7 per cent in 2024, outpacing the global average.

This was driven by robust manufacturing exports and increased public capital spending in key Member States. “We also noted that the region’s preliminary growth projection for 2025 remains at 4.7 per cent,” he said.

“However, we expressed caution that the persistent uncertainties in the global geo-economic landscape, including trade tensions and supply chain disruptions, pose significant downside risks to the region’s economic outlook,” he said.

The Summit expressed deep concern over the growing geo-economic uncertainties, including the imposition of unilateral tariff measures, which pose complex and multidimensional challenges to ASEAN’s economic growth, stability, and integration.

In response, “we reaffirmed ASEAN’s collective commitment to a predictable, transparent, non-discriminatory, fair, inclusive, sustainable and open regional economic development with the World Trade Organization (WTO) at its core,” the Chairman said.

Mr Ibrahim, however, said “We committed to refraining from imposing retaliatory measures in response to unilateral tariff actions as expressed in the Joint Statement of the ASEAN Economic Ministers on the Introduction of Unilateral Tariffs by the United States.”

Significantly, on 27 May, the ASEAN hosted the first Summit of ASEAN, the Cooperation Council for the Arab States of the Gulf (GCC), and the People’s Republic of China (ASEAN-GCC-China Summit). This was to take the regional grouping closer to countries with which trade relations could be developed further.

The Summit appreciated “China’s crucial role in promoting peace, stability, prosperity, and sustainable development in regional and international affairs.”

The Summit members noted their joint efforts to promote closer cooperation between ASEAN, GCC and China and China's vision to build a closer ASEAN-China Community with a shared future and a China-Arab Community with a shared future in the new era.