Malaysia rallies ASEAN: ‘common front’ against US tariffs

Malaysian Prime Minister Anwar Ibrahim has begun consultations with ASEAN leaders to respond to US taxes: ‘Fragmented economic outlook. Respond with one voice.’ Malaysia - which holds the presidency of the Southeast Asian bloc of nations - is pushing for trade equity.

Kuala Lumpur (AsiaNews) - Prime Minister Anwar Ibrahim has said that Malaysia, which currently holds the ASEAN (Association of Southeast Asian Nations) chair, has begun consultations with regional leaders to address what it sees as a pressing issue of trade fairness. In the wake of the heavy US tariffs, Kuala Lumpur is moving quickly to call for a collective response.

Anwar, who is also the minister for the economy, revealed that he had contacted his counterparts, Paetongtarn Shinawatra, the prime minister of Thailand, and Prabowo Subianto, the Indonesian president.

He also announced that he was planning further talks with Philippine President Ferdinand Marcos Jr and newly appointed Singaporean Prime Minister Lawrence Wong.

‘This initiative aims to forge a common ASEAN position on Malaysia's response and to call for fairness to prevail in trade commitments with the United States and beyond,’ he said.

The move comes in response to the US decision to impose a universal tariff of 10% from 5 April 2025, followed by steep customised tariffs on selected countries - including ASEAN states - from 9 April 2025.

According to a White House fact sheet dated 2 April, secondary tariffs will target countries with which the US has a significant trade deficit. Although Malaysia faces a reciprocal tariff of 24% less than some of its neighbours, Anwar emphasised that the broader impact on ASEAN, particularly on the Indo-Chinese economies, cannot be ignored.

Tariffs for members of the Indo-China bloc range from 49% for Cambodia, 48% for Laos, 46% for Vietnam and 44% for Myanmar. Thailand and Indonesia face 36% and 32% respectively, while Brunei shares 24% with Malaysia.

The Philippines will be affected with 17% and Singapore with 10%. ‘These disparities create a fragmented economic landscape within ASEAN. It is therefore essential that we respond with one voice,’ Anwar emphasised.

When asked by local media in Kuala Lumpur if Malaysia would retaliate, the Prime Minister used a measured tone. ‘This is not about retaliation for its own sake. Our priority is to protect the nation's economic interests while maintaining diplomatic balance. We are carefully analysing all aspects,’ he said.

A special Cabinet meeting was held yesterday on the issue of tariffs. In addition to Anwar, the Governor of Bank Negara, Datuk Seri Abdul Rasheed Ghaffour, and the Chairman of the Prime Minister's Policy Advisory Committee, Tan Sri Mohd Hassan Marican, also took part in the discussion.

Anwar also revealed that the Minister of Investment, Trade and Industry (MITI), Tengku Datuk Seri Zafrul Abdul Aziz, will meet his ASEAN counterparts next Thursday to formulate a regional trade strategy.

‘Tengku Zafrul has initiated contacts with his regional colleagues. A unified ASEAN ministerial meeting on trade will be held next week to coordinate our approach,’ confirmed Anwar.

Observers note that Malaysia's leadership in convening ASEAN on this issue represents a critical test of the bloc's cohesion and credibility.

With economic nationalism on the rise globally, how Southeast Asia responds to this trade jolt could set the tone for the region's diplomatic posture in a more protectionist world order.