US tariffs spark caution

Boosting commerce ties: Tengku Zafrul (seventh left) with Hong Kong’s Secretary for Commerce and Economic Development Algernon Yau (sixth left) and fellow ministers in a group photo during the 9th AEM-HKC Consultation of 57th AEM meeting, held at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur. Also present was Deputy International Trade and Industry Minister Liew Chin Tong (left). — IZZRAFIQ ALIAS/The Star

But Asean presses on with trade talks despite fresh duties

KUALA LUMPUR: Asean is taking a “wait-and-see” approach after being slapped with a fresh round of tariffs, barely a day after meeting with a top trade official from the United States.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Asean, as a regional group, will continue engaging with the United States based on the core principles of centrality and neutrality.

“For Malaysia, we have always stated our stance that we will continue engaging the US, and that has always been the stance of Asean.

“We have to ensure that we continue to do what we need to do as a country and as a group,” he told reporters after the conclusion of the 57th Asean Economic Ministers (AEM) meeting yesterday.

Tengku Zafrul said Asean continues to support a rules-based multilateral trading system in line with World Trade Organisation principles at its core.

“For us, the US has the right to do what they need to do. But for us, we will conti­nue to support multilateralism, diversify and strengthen our companies.

“We cannot be too focused on decisions by the US or any other country for that matter,” he added.

Tengku Zafrul also said Asean will discuss the matter when it meets again for the Leaders’ Summit that is set to take place from Oct 26 to 28.

“For now, Malaysia is also evaluating the impact on the industries,” he said.

Tengku Zafrul also confirmed that tariff matters were not part of the negotiations when Asean Economic Ministers met with US Trade Representative Jamieson Greer during the AEM meeting that concluded yesterday.

“We will meet again in October during the Asean Economic Community Council meetings to discuss this,” he said.

Meanwhile, Tengku Zafrul said that on Oct 25, the Asean Geoeconomics Task Force (AGTF) will present its findings and recommendations to a joint session of the Asean Foreign Ministers and AEM Summit.

“This is the inaugural meeting where the AGTF will address the foreign and economic ministers of Asean,” he added.

On Thursday, US President Donald Trump announced a new round of tariffs on imported goods, including a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture.

On Sept 25, Prime Minister Datuk Seri Anwar Ibrahim said that Malaysia was targeting reaching a deal with the United States on reciprocal tariffs before Trump’s visit next month for the Asean Summit.

Greer has said the United States is not ruling out the possibility that steeper tariffs may be imposed on some Asean nations if negotiations fail to yield favourable results.

Malaysia and the United States are seeking to complete an agreement on tariffs after Washington imposed 19% tariffs on Malaysian imports in August.

Malaysia’s tariffs were reduced to 19% after they were set at 25% in July.