Malaysia To Lead ASEAN Response To US Tariffs

In response to the US tariffs imposed by President Donald Trump, Malaysia will spearhead efforts to coordinate a regional strategy within Southeast Asia, according to Prime Minister Anwar Ibrahim.

During a video address shared on his social media platforms late on Sunday, including Facebook, Anwar emphasized Malaysia’s role as chair of the Association of Southeast Asian Nations (ASEAN). He stated that Malaysia would lead the charge to present a unified regional front, maintain resilient and open supply chains, and ensure ASEAN’s collective voice is firmly represented on the global stage.

In addition to his remarks, Anwar revealed that he had spoken with Vietnamese Prime Minister Pham Minh Chinh about a coordinated regional response to the tariffs. The Malaysian leader also discussed the issue with Indonesian President Prabowo Subianto, who arrived in Malaysia on Sunday evening, Anwar confirmed in another Facebook post.

Southeast Asian nations, including Malaysia, have been significantly impacted by the tariffs imposed by the Trump administration. Vietnam and Cambodia, for example, have been hit with tariff rates of 46% and 49%, respectively, while Malaysia faces a 24% tariff.

Despite these challenges, Malaysia, like many of its regional counterparts, has refrained from retaliating. Instead, the country has sought engagement with the United States, while rejecting the Trump administration’s claim that it imposes a 47% tariff on US goods.

To address the situation, Anwar announced the establishment of a geo-economic command center tasked with coordinating efforts to engage the US in finding a “mutually acceptable solution.” He assured that Malaysia’s response to the tariffs would be “calm, firm, and guided by the country’s national interests.”

Although the prime minister has maintained that Malaysia will not fall into recession due to the tariffs, he noted that the government may revise its growth targets for the year if the tariffs come into effect on April 9.

Anwar acknowledged the potential long-term impact of these tariffs, stating that the current round may signal the beginning of further economic challenges in the global market.

Bank Negara Malaysia Governor Abdul Rasheed Ghaffour added that the country still has room to negotiate with the US regarding the tariffs. He further stated that the central bank would only be able to assess the full impact on inflation once negotiations are concluded, as reported by the Malaysian state news agency Bernama.