KUALA LUMPUR, April 6 (Xinhua) -- Members of the Association of Southeast Asian Nations (ASEAN) need to pull their collective economic power to effectively respond to the U.S.-initiated trade disruptions, following a slew of tariffs imposed on most economies worldwide, according to the president of a Malaysian business group.

These tariffs are likely to significantly affect Malaysian exports, particularly in electrical and electronics, palm oil derivatives, rubber-based products and textiles and garments, as these are among the key contributors to Malaysia's trade with the United States, Small and Medium Enterprises Association of Malaysia President William Ng recently told Xinhua.

"The higher tariffs will lead to increased costs for both importers and exporters, reduce our competitiveness not only in the U.S. market, but in other markets as well, and potentially affect jobs and investments among SMEs," he said.

"We can expect a short period of uncertainty as economies across the region and other impacted economies readjust their strategies to counter or mitigate these series of tariffs. Domestically, the impact will range from minimal to moderate, with goods imported from the United States likely to cost more in the mid-term," he explained.

Calling the tariffs a "wake-up call" for ASEAN member states, Ng said Malaysia, as the current ASEAN chair, should push to reboot talks on creating a single ASEAN market, allowing for some form of customs union, and further reducing non-tariff barriers. "This intra-region cohesion is essential, given the relatively small size of individual markets. Collectively, ASEAN is on track to become the fourth-largest economy in the world by 2030," he said.

Ng also urged SMEs to adapt in order to face the new challenges and take advantage of the opportunities that will inevitably result from such disruptions, noting that with the right strategies, businesses can adapt to and even benefit from this shift in global trade dynamics.

"We urge the government and SMEs to take actions to mitigate risks and seize new opportunities. Businesses must learn to diversify both their source of raw materials and customers, i.e. making sure their supply chain risks are mitigated. This is a good practice regardless of the impact of this round of tariff," he said.

"At the ASEAN level, the urgency to lower non-tariff barriers is greater than ever. The discussion on creating a single ASEAN market must be re-opened immediately, with the aim of creating some semblance of customs union that can benefit us as both an exporting bloc and as a large regional market," he added.

U.S. President Donald Trump on Wednesday announced a 10 percent baseline tariff for imports from all trading partners and higher rates on certain ones, with the decision provoking sharp criticism from economists, trade experts and foreign governments who see it as a misguided attempt to use tariffs as a blunt instrument in addressing complex trade imbalances. Enditem

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