PETALING JAYA: Malaysia will submit a comprehensive impact assessment on the newly imposed US tariffs within the week and plans to convene a virtual meeting with Asean Economic Ministers to prepare a joint regional response, says Prime Minister Datuk Seri Anwar Ibrahim.
This comes after the United States announced sweeping tariffs on April 2, impacting imports from almost all trading partners, including Malaysia.
Starting April 5, all Malaysian goods exported to the US would incur a minimum duty of 10%, which would increase to 24% for most products by April 9, although some exemptions apply.
Anwar said the Investment, Trade and Industry Ministry would conduct an in-depth study on the tariffs' impact on key sectors, which would be used to determine appropriate support measures.
“All options will be studied and considered to ensure the well-being of our people and business sectors,” he said in a statement on Sunday (April 6).
Malaysia’s rubber, plastics, textiles and furniture industries are expected to be hit hardest. While the semiconductor sector—the country’s top export to the US—received partial exemptions, the broader impact would likely be significant.
“If the 24% tariff were implemented, from an economic perspective, the 2025 GDP growth projection of 4.5 to 5.5% will need to be reviewed.
“However, for now, let me reassure you that the Government does not foresee a recession in Malaysia,” Anwar said, adding that the economy remains resilient, supported by strong household spending, robust domestic investment, healthy tourism activity and the ongoing implementation of national master plans.
Anwar described the US decision as a major threat to global trade norms, calling it a rejection of the “principles of free, non-discriminatory, predictable and open trade” established under the World Trade Organization (WTO), which the US helped to found.
He also rejected claims by US authorities that Malaysia imposes a 47% tariff on US imports.
“The basis for calculating this tariff is fundamentally flawed, which has inaccurately resulted in Malaysia being imposed a reciprocal tariff of 24%,” he said.
At the regional level, he said Malaysia, as Asean Chair this year, would spearhead efforts to present a united front.
“Asean nations are amongst the countries hit with the highest US tariffs. Malaysia will lead efforts to present a united regional front, maintain open and resilient supply chains, and ensure Asean’s collective voice is heard clearly and firmly on the international stage,” he added.
Anwar acknowledged the seriousness of the development, warning that “this round of sweeping tariffs may just be the beginning of greater challenges to come in the external economy.”
However, he pledged that Malaysia would respond with calm and resolve.
“We will do this, not alone and not confrontationally, but in collaboration with friends and partners, and constructively,” he said.
He added that Malaysia would not introduce retaliatory tariffs.
“We are fully committed to securing a favourable resolution that preserves vital market access, attracts continued foreign investment, and supports the well-being of Malaysian workers and businesses,” he said.
Anwar also reaffirmed the government’s commitment to economic and industrial reform through initiatives such as the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR), adding that the MADANI government understood the anxieties faced by affected sectors.
“Make no mistake, we take these tariffs seriously because they challenge the fundamental principle of non-discrimination that underpins global trade rules,” he said.
