By Tengku Noor Shamsiah Tengku Abdullah
KUALA LUMPUR, April 7 – Prime Minister Datuk Seri Anwar Ibrahim has voiced strong concern over the United States’ sweeping tariff hikes on global imports, warning that the move poses a serious challenge to the rules-based international trade system and could cast a long shadow over Malaysia’s economic prospects.
Starting 5 April, all Malaysian goods entering the U.S. will face at least a 10% duty. By 9 April, most will be subjected to a punitive 24% rate, with only limited exemptions—mainly in the semiconductor sector.
The U.S. cited “reciprocity” as justification, erroneously claiming Malaysia had levied 47% tariffs on American products.
Reaffirming Malaysia’s commitment to free, open, and rules-based trade, Anwar who is also Finance Minister, emphasized that such unilateral measures strike at the heart of global economic cooperation. He underscored that the move contradicts the very principles championed by the United States in creating the World Trade Organization (WTO) and its predecessor, the General Agreement on Tariffs and Trade (GATT).
“The imposition of tariffs on every trading partner undermines the fundamental principle of non-discrimination in global trade. It threatens not only Malaysia, but the wider international community that depends on fair access to markets,” Anwar said he said in a televised broadcast on April 6.
While Malaysia’s crucial semiconductor exports are partially shielded, other key industries—such as textiles, furniture, rubber, and plastics—face potentially devastating consequences. These sectors employ tens of thousands of Malaysians and contribute significantly to export revenues.
Anwar made clear that Malaysia will not retaliate with punitive measures of its own, but will instead pursue calm, calculated diplomacy. His administration is focused on securing continued market access and investor confidence without escalating tensions.
“Our response will be calm, firm, and guided by Malaysia’s strategic interests. We seek a resolution that is mutually acceptable, fair, and equitable,” he noted.
He also rejected the U.S. assertion that Malaysia imposes a 47% tariff on American goods, calling the calculation “fundamentally flawed.” Malaysian officials are engaging directly with U.S. authorities and American firms operating in the country to present a clearer picture and to work towards a fair outcome.
From a macroeconomic standpoint, Anwar acknowledged that if the 24% tariff is fully implemented, Malaysia’s 2025 GDP forecast of 4.5% to 5.5% may require downward revision. However, he offered assurance that the nation is not heading into recession.
“Our macroeconomic foundations remain strong—bolstered by robust domestic investment, resilient household spending, and a revitalized tourism sector,” he affirmed.
Malaysia’s trade strategy, Anwar added, is underpinned by a diverse portfolio of regional and global alliances—such as ASEAN, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP). These partnerships offer buffers against shocks and platforms for regional cooperation.
As ASEAN Chair, Malaysia is also spearheading a united regional front. The Ministry of International Trade and Industry (MITI) is currently preparing a comprehensive study on the impact of the tariffs and will host a virtual meeting with all ASEAN Economic Ministers to shape a coordinated response.
The newly established National Geo-economic Command Centre (NGCC), chaired by Anwar himself, will lead efforts to assess sectoral impacts and craft mitigation strategies. The government is also accelerating long-term industrial reforms via the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR).
Looking ahead, Anwar warned that the current tariff escalation may be just the beginning of broader geopolitical and economic shifts.
“We must be mentally prepared to weather greater external challenges. This government will not face them alone nor confrontationally—but with collaboration, calm and constructive dialogue,” he said.
The Prime Minister ended his remarks by reaffirming Malaysia’s unwavering focus on protecting its people, businesses, and economic sovereignty in the face of rising global uncertainty.
- TNS News