[Text/Observer Network Wang Yi] Since US President Trump announced the imposition of "reciprocal tariffs" on all goods on February 2, senior officials from many countries have spoken out against the tariffs and vowed to take countermeasures. Malaysian Prime Minister Anwar Ibrahim stated on the evening of February 6 that Malaysia will take the lead in coordinating ASEAN countries' response to Trump's tariffs.

"As the Chair of ASEAN, Malaysia will take the lead in striving to build a unified regional front to maintain open and resilient supply chains and ensure that ASEAN's collective voice is heard clearly and firmly on the international stage," Anwar said in a video speech posted on social media.

Video screenshot of Malaysian Prime Minister and Finance Minister Anwar

In another social media post, Anwar said he had discussed the region's collective response with Vietnamese Prime Minister Pham Minh Chinh, emphasizing the importance of strengthening regional supply chains. Anwar also mentioned that he discussed tariff issues with Indonesian President Prabowo on February 6. The Indonesian state news agency Antara confirmed Anwar's statement, saying that Prabowo exchanged views with leaders of Malaysia, Brunei, Sultan, the Philippines, and Singapore regarding tariffs.

In a personal social media account, Anwar revealed more details about this discussion. He agreed to coordinate collective measures to respond to US tariffs and disclosed that an extraordinary meeting of ASEAN Economic Ministers would be held this week to seek the best solution for all member states.

According to a report by Nikkei Asia Review on February 7, Anwar had also discussed ASEAN's collective response to US tariffs with leaders of the Philippines, Brunei, and Singapore prior to this. Singaporean Prime Minister Wong Wai Ching said on February 4 after speaking with Anwar, "Singapore will continue to closely cooperate with Malaysia and ASEAN partners to deepen regional economic integration and engage constructively with our global trade partners."

Bloomberg reported on February 6 that ASEAN countries are among the most severely affected by US tariffs. In addition to Malaysia, which faces up to 24% tariffs as the 2025 ASEAN rotating chair, the highest tariffs imposed by the US on Cambodia, Laos, Vietnam, Myanmar, Thailand, and Indonesia are even higher, reaching 49%, 48%, 46%, 45%, 37%, and 32%, respectively. Singapore, the Philippines, and Brunei also face tariffs of 10%, 17%, and 24%, respectively.

The opening ceremony of the 44th and 45th ASEAN Summits in Vientiane, Laos, on October 9, 2024. Visual China

Reports noted that like other countries in the region, Malaysia currently chooses not to retaliate against US tariffs but instead seeks engagement with the Trump administration. However, Malaysian authorities previously refuted the US government's claim that the country imposes a 47% tariff on US goods. The Malay Mail reported on February 6 that Anwar believed there were fundamental flaws in the calculation basis for US tariffs, incorrectly resulting in Malaysia being subject to a 24% "reciprocal tariff."

Anwar said that the government has established a Geoeconomic Command Center and has begun efforts to engage with the US to find a mutually acceptable solution. He stated that Malaysia will respond "calmly and resolutely, guided by national interests."

Anwar, who also serves as finance minister, reiterated his earlier assertion that the country will not fall into an economic recession due to tariffs. However, he noted that if the tariffs eventually come into effect on April 9, the government may reconsider its GDP growth target for this year. The current expectation for Malaysia's GDP growth this year by Bank Negara Malaysia is between 4.5% and 5.5%.

"We must acknowledge that this round of large-scale tariffs may only be the beginning of greater challenges facing the external economy in the future," Anwar said.

A Star Malaysia article on February 7 noted that given the destructive impact of tariffs on supply chains, global demand, and corporate operating costs, Malaysia's foreign trade will face severe challenges.

According to a report by the New Straits Times on February 4, the Malaysian International Chamber of Commerce and Industry (MICCI) stated in a statement that over 65% of the country's GDP is linked to trade and is highly vulnerable to such impacts, potentially leading to the loss of up to 50,000 direct or indirect jobs.

MICCI predicted that production in Malaysia's electronics, automotive parts, gloves, and other export-related industries may significantly decline, facing risks such as declining exports, increased employment pressure, and supply chain disruptions. "This is one of the most important trade developments in recent years. A 24% tariff will have a profound impact on the electronics manufacturing services sector, and its effects may extend beyond this industry to affect palm oil, medical devices, automotive parts, textiles, and more," the statement said.

The New Straits Times analysis noted that electronic products are the largest component of Malaysia's exports to the US, with semiconductors accounting for the largest share. Although the Trump administration has granted exemptions for the semiconductor industry, US officials have hinted that measures targeting semiconductors are imminent.

The newspaper lamented that Trump's term lasts only four years, and it is unclear whether these policies will continue beyond his term. However, no country, including the US, can avoid the impact of Trump's tariffs. "Malaysia cannot expect a return to normalcy; we must adapt to the new reality," it said.

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Original source: https://www.toutiao.com/article/7490464121109004836/

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