US tariffs and Middle East conflict threaten Asean growth, officials warn

US tariffs and Middle East conflict threaten Asean growth, officials warn

Unilateral US tariff measures and escalating conflict in the Middle East are challenging the Association of Southeast Asian Nations (ASEAN) ‘s growth, Cambodian officials and business leaders warned yesterday.

Speaking at the opening of the Cambodia-Asean Business Summit 2026, Prime Minister Hun Manet said the world faces mounting uncertainty, supply chain disruptions and rising political tensions that threaten regional stability.

“For Asean, this development highlights the need to strengthen regional resilience through diversifying energy sources, promoting deeper economic integration and enhancing the crisis coordination mechanism,” he said.

Kith Meng, president of the Cambodia Chamber of Commerce, told executives that recent waves of unilateral tariffs and retaliatory responses have intensified economic fragmentation. He noted a shift away from a predictable multilateral trading system toward a more transactional global order.

Meng said the instability is compounded by the escalation of conflict between the United States, Israel and Iran, which is “directly challenging Asean’s growth in 2026.”

“With Brent crude prices surging and disruptions in the Strait of Hormuz, a transit point for 20 per cent of the world’s oil, our regional businesses face immediate inflationary pressures,” Meng added. He argued that Asean’s strength lies in upholding neutrality and centrality rather than choosing sides.

Thong Mengdavid, a director at the Cambodia University of Technology and Science, told Xinhua that the most immediate impact would be on energy prices. He warned that, as most Asean economies are net energy importers, higher costs will drive inflation and weaken consumer purchasing power.

For Cambodia, Mengdavid said the impact will be notable in the garment and agriculture sectors due to rising logistics expenses.

He urged the bloc to boost regional energy cooperation and diversify export markets to sustain growth.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and Timor-Leste. 

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