KUALA LUMPUR – Malaysia will continue its active engagement with the United States and avoid making hasty calls amid President Donald Trump’s use of tariffs as an apparent negotiation tool.
Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) said Putrajaya should not rush to make quick decisions on the matter as the issue is not yet set in stone, pointing to Trump’s recent announcement on a 30-day pause on 25% tariffs on Mexico and Canada.
Trump had also announced 10% tariffs on China but did not include it in his latest announcement on the postponements.
Anwar told the Dewan Rakyat today that while Malaysia works aggressively on expanding relations with other nations to diversify investment and trade opportunities, it will remain engaged with the US as an important trade partner.
“There are no signs yet that this (tariffs) would have a negative impact on us. However, I agree that there is a need to take proactive measures,” Anwar said during the Prime Minister’s Question Time.
“We cannot wait as the impacts of the tariffs, if continued, will have a negative effect on us,” he also said when replying a supplementary question.
Anwar, who is also the Finance Minister, was responding to the original question by Lim Guan Eng (Bagan-PH) on Malaysia’s position on the global trade war triggered by Trump’s tariffs.
After postponing the tariffs on Mexico and Canada yesterday, Reuters reported Trump is also expected to speak with Chinese President Xi Jinping sometime this week about the 10% duty the US wants to impose on all Chinese imports.
In reply to Lim’s supplementary question regarding Malaysia’s stance amid Trump’s threat to slap BRICS nations with 100% tariffs if they replace the US dollar as a reserve currency, Anwar said Malaysia has seen a steep increase in engagements with BRICS member nations.
“If we can diversify our trade relations here (among BRICS nations), I believe that we can withstand (the effects of US tariffs). But, we will still actively negotiate with the US.”
When asked by Datuk Seri Doris Sophia Brodi (Sri Aman-GPS) on whether there could be any implications on Malaysia’s electrical and electronics (E&E) sector, Anwar acknowledged that about 26% of US’ required semiconductor and chips supply are sourced from Malaysia.
“We have some initial measures in place, (which includes) us continuing to provide explanations to the US. We’ll follow the rules as well as not violate any agreement and requirement established by the United Nations,” Anwar said.
He added that a committee under the Investment, Trade and Industry Ministry has been established to monitor the matter to ensure that any potential effects are handled appropriately. – February 4, 2025