KUALA LUMPUR: As governments and businesses worldwide continue to be plagued by anxiety over the United States’ sweeping tariffs taking effect on April 9, Malaysia and Asean are making their stance on a non-retaliatory policy clearer.
This sentiment was expressed during meetings between business councils and Asean senior officials during day 2 and day 3 of the 12th Asean Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) on Tuesday and Wednesday (April 8 and 9).
The tariff prompted calls for Asean member states to enhance trade with one another and with other trading partners. Business groups also highlighted the importance of trade integration, regional connectivity, and simplifying regulatory requirements to enhance the ease of doing business.
Finance Minister II Datuk Seri Amir Hamzah Azizan, had urged for calm and had assured of Malaysia’s and Asean’s non-retaliatory policy at the bilateral sessions with the US and EU Asean Business Councils.
Meetings were also held with the US-Asean Business Council(USABC), EU-Asean Business Council (EU-ABC) and Asean Business Advisory Council (Asean-BAC).
On Thursday (April 10), the Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz will chair a meeting of ASEAN economic ministers to discuss the tariff issue and is expected to formulate a collective Asean response.
The US President Donald Trump’s reciprocal tariffs went into effect at 1.01am ET (US Time) on Wednesday, placing international trade and global markets in an unsettling position.
Malaysia faces a 24% tariff rate.
China has been hit with a 104% import tax, and in response, China raised its tariff on the United States to 84% from 34%, effective April 10.