PUTRAJAYA — Malaysia and Asean countries need to be in agreement on a response to the tariffs announced by the United States (US) to ensure that upcoming negotiations and discussions have a solid foundation, said Prime Minister Datuk Seri Anwar Ibrahim.
He said that although the tariff announcement by US President Donald Trump was made on questionable grounds, Asean countries should not take the matter lightly, especially in the current uncertain global economic and political climate.
“We cannot take this lightly. It is quite unusual, as the country that previously supported the spirit of free trade and established the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT) — wealthy countries like the United States — it is now taking a different approach.
“This is what I mean by ‘post-normal times’, when political and economic policies are implemented unexpectedly, including tariff announcements based on very weak grounds,” he said during a speech at the Prime Minister’s Department staff meeting here today, reported by Bernama
He said the US’ method of calculating tariff rates was flawed, noting that some small islands were included, even though “they are only inhabited by penguins”, in reference to the Heard and McDonald Islands, a territory of Australia which is uninhabited by humans.
Nevertheless, he said the government has chosen to take a moderate approach, given that there is room for discussions and negotiations, and that there are some exceptions that need to be identified in detail.
“So, my task, the Foreign Affairs Ministry, and the relevant ministers are to contact our friends in Asean so that each country can state its position, but at the same time, we move together as a group.
“We must stand firm together as Asean — with a population of 640 million and an economic strength that is among the top in the world. This region is also considered one of the safest and fastest-growing in the world,” he said.
Anwar, who is also the Finance Minister, said the a special government committee handling the US tariffs held a meeting, the decision of which he explained to all Cabinet members yesterday.
Asean members hit with the highest reciprocal tariffs are Vietnam with 46%, Cambodia 49%, Laos 48%, and Myanmar 44%.
Thailand was slapped with 36%, Indonesia 32%, Brunei and Malaysia at 24% each, the Philippines 17%, and Singapore the basic tariff of 10%.
Anwar yesterday had a phone call with Vietnamese Prime Minister Pham Minh Chinh to discuss US tariffs and other bilateral issues.
Vietnam is among 50 countries that have reached out to the US to negotiate on reciprocal tariffs, which are to take effect on April 9.
Vietnam is seeking a 45-day delay to the 46% tariff imposed and is considering zero rising its import tariff on US goods to request similar treatment for its exports to the US market. – April 7, 2025