Malaysia can expect to face pressure to boost agricultural imports from the US and align closer to the world’s largest economy as the Southeast Asian nation prepares for a high-stakes meeting with Washington’s trade officials on Thursday.
US President Donald Trump on April 2 slapped reciprocal tariffs of 24 per cent on most Malaysian goods, part of a broader wave of duties targeting countries he accused of taking unfair advantage of the American economy.
Although Trump later announced a 90-day suspension of the tariffs – set to expire in early July – the freeze does not apply to China, which now faces duties of at least 145 per cent on its exports to the US.
Malaysia’s delegation to Washington will be led by Trade Minister Tengku Zafrul Abdul Aziz, who said on Friday that the meeting would focus on explaining the country’s role as a “neutral” actor that could play an important role in linking Asian and US supply chains.
But the escalating trade conflict between the US and China will make it harder for Malaysia to navigate its dealings with its two largest trade partners.
“Malaysia and Asean find themselves at the horns of a dilemma, with both the US and China presenting equally undesirable options,” geopolitical analyst Asrul Hadi Abdullah Sani said, referring to the Association of Southeast Asian Nations.
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