The United States’ decision to levy a 25 per cent tariff on automotive, semiconductor, and pharmaceutical imports presents a significant challenge for Malaysia.
Foreign Minister Datuk Seri Mohamad Hasan highlighted that 60 per cent of Malaysia’s trade with the US comprises electrical and electronics (E&E) exports, making this a critical issue, according to a news report by The Sun Malaysia.
“This is a huge blow if we can’t get this resolved soon,” he said.
During a parliamentary session in the Dewan Rakyat, Mohamad Hasan stressed the urgency of addressing this matter. He mentioned that ASEAN is planning an immediate special ASEAN-US summit to present its concerns to the new US administration, aiming to mitigate the tariff’s impact on ASEAN countries.
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The minister characterised the US policy as “reshoring,” designed to incentivise large companies operating outside the US to return and establish domestic operations through high taxes.
In response to a question from Manndzri Nasib (BN-Teggara) of Malaysia about leveraging the 2nd ASEAN – Gulf Cooperation Council (ASEAN-GCC) Summit and the ASEAN – GCC – China Summit to enhance economic cooperation, trade, and investment, Mohamad suggested a collaborative approach. He advocated for discussions between ASEAN, GCC, and China to address the situation.
Mohamad noted that China has one of the largest markets, the GCC possesses substantial capital, and ASEAN is rich in natural resources. He posited that negotiations between these three blocs could foster intra-ASEAN economic development, potentially positioning ASEAN as the fourth-largest economy globally by 2030.
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