Milan: The finance chiefs of the ASEAN Plus Three (APT) – the Association of Southeast Asian Nations (ASEAN) plus Japan, China, and South Korea – have warned of the potential global economic fallout of protectionist trade policies, following the announcement of higher import tariffs by US President Donald Trump.

According to Oman News Agency, the finance ministers and central bank governors expressed concerns that escalating trade protectionism could weigh on global trade, leading to economic fragmentation and affecting trade, investment, and capital flows across the region. This warning was issued in a statement adopted during their meeting on the sidelines of the Asian Development Bank’s annual meeting in Milan, Italy.

The statement from the ASEAN Plus Three countries also reaffirmed their commitment to a rules-based, free, fair, and transparent multilateral trading system. In response to sector-based tariffs, including those on automobiles, Trump announced “reciprocal” tariffs in early April. ASEAN members Cambodia and Vietnam are facing significant US levies of 49% and 46%, respectively, and Japan faces a 24% tariff on imports.

The finance chiefs noted that the economic outlook is “subject to heightened uncertainties,” and called for “enhanced regional unity and cooperation.” They also agreed to update the Chiang Mai Initiative Multilateralization, originally launched after the 1997 Asian financial crisis to provide liquidity in emergencies, expanding its scope to include pandemics and natural disasters.