KUALA LUMPUR: The potential of further trade restrictions and tariffs being introduced by the United States will be discussed during the Asean Economic Ministers Retreat at the end of Februray, says Tengku Datuk Seri Zafrul Abdul Aziz.
Tengku Zafrul said Malaysia has to brace itself for any potential threats to the local economy, which could include tariffs by the United States.
“We have briefed the Prime Minister and Cabinet ministers about potential risks to any tariff hikes or new tariffs, or even new export restrictions.
“We have to brace ourselves for any potential threats to the economy,” said Tengku Zafrul during a panel discussion at the China Conference Southeast Asia organised by Hong Kong-based news outlet South China Morning Post at a hotel in KL on Feb 17.
Recently, United States President Donald Trump announced a 25% tariff on all steel and aluminium products being brought into the country.
Trump also introduced a 10% tariff on all goods from China and he previously threatened to hit 25% tariffs to Canada and Mexico.
But, the plan to slap Canada and Mexico with tariffs has been put on hold until March.
Trump is also expected to announce further tariffs on imported cars to the United States by early April this year.
Meanwhile, Tengku Zafrul said it is crucial for Asean to increase trade within the regional grouping.
“That is why we want to upgrade the Asean Trade in Goods Agreement (Atiga), and the Digital Economic Framework Agreement (Defa).
“We want to diversify our export markets. We are looking at South America, and Africa. We are also trying to renegotiate the free trade agreement with the European Union (EU) and the Gulf Cooperation Council (GCC),” said Tengku Zafrul.
Meanwhile, Tengku Zafrul also said the combined GDP of Asean member states was US$3.8tril in 2023, making it the world’s fifth-largest economy.
“Asean has its strength. We are a large economic group as well,” he added.
Asean’s gross domestic product (GDP) is projected to reach US$4.5tril by 2030, making it the fourth largest economy in the world.
