High US tariffs risk straining China-Malaysia ties, says Anwar

 

Malaysia intends to send a trade delegation to the US to discuss the 24% tariff imposed on the country and the methodology used to decide the quantum. (Bernama pic)

PETALING JAYA: 

The move by the US to impose retaliatory import tariffs on several countries, including Malaysia, can strain the country’s trade and investment relations with China, says Prime Minister Anwar Ibrahim.

He said the high tariffs and taxes introduced by the US would have direct implications for Malaysia’s economy, which is heavily reliant on international trade, reported Bernama.

“This situation not only affects China’s economy, but also impacts Malaysia, even though we are temporarily exempted from the implementation of these tariffs,” he said at the Kelantan state-level Aidilfitri Madani 2025 celebration in Bachok today.

Anwar said that as a trading and exporting nation, Malaysia remains highly vulnerable to fluctuations in global trade policy.

“When the US imposes high tariffs on China, of course, we will also feel the impact.

“Fortunately, the US has temporarily suspended the implementation of these tariffs on several Asean countries, including Malaysia. However, China remains subject to the tariffs,” he said.

US president Donald Trump announced a 90-day suspension of higher tariffs on selected countries on April 9, even as the trade war with China escalates.

Malaysia was earlier subjected to a 24% reciprocal tariff. While that hike has been paused, a flat 10% baseline tariff still applies to all countries, except China, which remains subject to the higher rate.

Malaysia is to send a trade delegation to the US to appeal against the imposition of the high tariffs and is seeking clarification on the methodology used to decide the quantum.

Investment, trade and industry minister Tengku Zafrul Aziz argued that the actual average tariff imposed on US imports is closer to 5.6% and not 47% as claimed by the US when it decided on the 24% tax. - FMT