There is nothing certain about the global US tariffs except uncertainties.
That was the response of Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Aziz after an apparent pause by US president Donald Trump on tariff increases with global trading partners.
This is expected and part of the new normal of the current Trump administration. Many have warned the US on their current president, even before his White House return, but probably, it is a case of misplaced priorities.
“Malaysia is actively evaluating the potential implications of these policy changes and remains steadfast in its commitment to working closely with ASEAN partners, said Tengku Zafrul.
Malaysia is engaging member countries to mitigate disruptions, strengthen regional economic resilience, and promote balanced and stable trade relations.
Trump this week announced an immediate 90-day tariff pause for many countries, bringing relief to investors concerned about the global economic impact of US trade policies.
The pause came less than 24 hours after the tariffs kicked in. However, Trump has maintained the 10% blanket duty on almost all US imports and hiked tariffs on Chinese goods to 125%.
On Wednesday, China unveiled retaliatory tariffs of 84% on imports of US goods, matching additional tariffs imposed by Trump.
The trade war widened further on Wednesday after the European said it would begin collecting retaliatory duties on US imports.
The back-and-forth between the superpower economies has led to swings in stock markets globally, with Asian and European markets mostly lower and US stocks opening mixed.
Tengku Zafrul, who will lead Malaysia’s delegation to Washington to discuss the tariffs at the end of the month, said Malaysia would continue its strategy of diversifying trade partnerships, expanding into new markets, and strengthening existing ones.
Being subservient to the US
Trump this week boasted that his tariffs worked in the way that other countries are lining up to negotiate with the US.
His remarks irked the global leaders when he mocked other countries in vulgar terms as they scrambled to make a deal with the US president.
This was grandstanding at its best. I think just about everyone would predict that this has been coming for a while. This played into the ‘Make America Great Again’ narrative that Trump and his supporters has been trying to pivot.
If anyone thought that Trump’s second term would be different that his first term, they learnt their lesson here. Against all warnings, Americans actively wanted a return the “good old days”.
But here’s the “good old days” for you: Global recession is a looming possibility. Economists have warned that the trade war is likely to hurt Americans more than it will any other country.
Taxing all imports will lead to greater costs for US businesses, which will then raise prices for consumers and may well bring it into recession, a sustained economic decline.
It gets the world thinking – would it be possible to have a trade market that is free from volatility caused by bad leadership and policy?
Say in the future, there’s more of Trump’s kind, it is possible for others to not get burnt when one of the superpowers are playing with fire?
No tit-for-tat
There is growing concerns by some that ASEAN would be used as an arena for power proxies in a trade war. However, all indications point to it being resilient and united in the face of the US tariffs.
A Geoeconomics Task Force was set up during a meeting of economic ministers from its 10 member nations on Thursday.
In a joint statement, the group outlined its stance on US trade policies, reaffirming Asean’s stance as a comprehensive strategic partner of the US, while expressing concerns over the US tariffs.
Southeast Asians have shifted back and forth between the US and China relating to strategic alignment and confidence in them on global free trade.
Most Southeast Asians aligned with China in 2024, but this was replaced by the US this year (52.3 per cent vs China’s 47.7 per cent).
Southeast Asians had the most confidence in the US on the global free trade agenda in 2024, but this shifted to China in 2025 (20.6 per cent vs US’ 19 per cent).
What this shows is that Southeast Asia has become more flexible in which major power they prefer, driven by pragmatism than loyalty.
Interestingly, Indonesia, Malaysia, and Singapore were the only ASEAN countries where distrust for the US exceeded trust.
These three countries also happen to have the highest perceived contribution to ASEAN, potentially guiding an ASEAN consensus.
Staying neutral
There is case to be made that Malaysia, to preserve its interests, must continue to invest in forging ties with strategic allies and global superpowers.
In the case of the US, we must recognise that the escalation of the trade war by its administration is unprecedented and driven by a sense of nationalism, however flawed it might be.
Sure, while there are efforts to reduce dependency on US and other superpowers in driving trade in Southeast Asia, we must hedge our bets.
Malaysia’s preference in holding dialogues over imposing retaliatory tariffs is a measured approach and a realistic one. What Malaysia is demonstrating here is not weakness—it is strategic patience.
While larger economies engage in tariff brinkmanship, Malaysia and ASEAN must focus on long-term regional stability, rather than get caught in a game of short-term wins and public posturing.
We cannot afford a policy of escalation when the very structure of the global economy is in flux.
The smarter move is to continue positioning Malaysia as a dependable, consistent, and neutral player in global trade.
Being adaptable to change
We must face the fact that volatility may be the default mode of global economics for the foreseeable future.
With populism rising, elections reshaping foreign policy overnight, and nationalism driving trade barriers, this is not a temporary phase—it’s a paradigm shift.
Gravity shifts are happening as neither US and China are proving to be consistent champions of free trade.
This provides an opportunity for ASEAN to play a more active part in the global economy. The establishment of the Geoeconomics Task Force is a good start.
Now, it must be empowered to act with vision, crafting ASEAN-centric strategies that reduce vulnerability to external shocks.
By working collectively, ASEAN can push for reforms in global trade institutions, support multilateralism, and strengthen intra-ASEAN economic links to reduce dependency on external demand.
As for Malaysia, we must hold our ground and trade smarter. We hedge where needed. We stay agile, diplomatically nimble, and economically resilient.
And above all, we do not let others define our place in the world. The only certainty is uncertainty—but for Malaysia, that can be a competitive advantage, if we’re prepared to adapt faster than the chaos unfolds.
DISCLAIMER:
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at nazmixsuhaimi@gmail.com.
