KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has taken a swipe at the growing use of trade tariffs, warning they have become tools of geopolitical pressure rather than drivers of economic growth.
Speaking at the opening of the 58th Asean Foreign Ministers’ Meeting (AMM) in Kuala Lumpur, Anwar cautioned that instruments once meant to foster development were now being wielded to isolate and dominate.
“Across the world tools once used to generate growth are now wielded to pressure, isolate and contain,” he said, as quoted by the AFP.
“Tariffs, export restrictions and investment barriers have now become the sharpened instruments of geopolitical rivalry.”
Though Anwar did not explicitly name the United States, his comments came as tensions continue to rise over the tariff policies of US President Donald Trump.
The issue is expected to dominate discussions over the three-day gathering of top diplomats from the 10-nation Asean bloc and its external partners, including the United States, China, and Russia. US Secretary of State Marco Rubio is set to arrive in Kuala Lumpur on Thursday for two days of engagements, including a post-ministerial conference and the East Asia Summit Foreign Ministers’ Meeting, where key economic players such as Japan and South Korea will also participate.
Washington has faced mounting criticism following Trump’s recent decision to impose sweeping levies on several of its trading partners.
As of August 1, Malaysia will be subjected to a 25% blanket tariff on all its exports to the US, while Laos faces a 40% rate. Vietnam, meanwhile, appears to have reached a tentative deal that may shield it from the full brunt of the duties.
Speaking to reporters today, Anwar confirmed that Malaysia is continuing negotiations with Washington, noting that officials have been dispatched to convey the country’s position, according to Bernama.
“We have sent teams to negotiate and explained the position that ours is a trading nation, and therefore, (the tariff) would impact the economy of this country and that of the region negatively,” he said.
“Of course, we must maintain our relationship with the US, but we will also defend our position that Malaysia is a trading nation, so we will request that the tariff rate be reconsidered.”
Anwar added that he intends to raise the issue directly with Rubio during their meeting tomorrow. The upcoming talks mark Rubio’s first visit to Asia since becoming Secretary of State earlier this year.
The higher tariff—an increase from the rate Washington announced in April—was detailed in a letter addressed to Anwar and shared by Trump via his Truth Social platform. Trump argued that the 25 per cent figure remains “far lower than what is required to eliminate the trade deficit imbalance the US is experiencing with Malaysia.”
As Malaysia presides over Asean this year, Anwar has called on member states to forge greater cohesion in the face of growing external challenges, including economic uncertainties and ongoing regional disputes.
“Our cohesion must not end at declarations,” he said. “It must be built into our institutions, our strategies and our economic decisions.”
However, unity within the bloc remains fragile. The war in Myanmar continues to rage, with over 6,000 lives lost and millions displaced, while tensions persist along the Thailand-Cambodia border.
“Regrettably, peace remains elusive as the suffering deepens,” Anwar said, underscoring the need for a firmer Asean response.
Despite being frequently criticised as ineffectual, Asean now faces increasing pressure to project a united front amid a more polarised global landscape.
“Speak with coherence, act with foresight,” Anwar urged his regional counterparts. – July 9, 2025