Kuala Lumpur: President Donald Trump’s decision to impose a 25 per cent tariff on automotive, semiconductor, and pharmaceutical imports will be a challenge for Malaysia. Foreign Minister Datuk Seri Mohamad Hasan expressed concerns as 60 per cent of Malaysia’s total trade with the United States consists of electrical and electronics (E and E) exports. He highlighted the urgency of resolving this issue to avoid significant repercussions on Malaysia’s trade.

According to BERNAMA News Agency, Mohamad Hasan stated that ASEAN plans to hold a special ASEAN-US summit to engage with the new US administration on the tariff issue. He emphasized the importance of presenting ASEAN countries’ views to ensure the proposed tariff does not adversely affect them. Mohamad explained that the US strategy, termed “reshoring,” involves imposing high taxes to encourage large companies to return operations to the US.

In response to a query from Manndzri Nasib (BN-Teggara) regarding the potential benefits of the upcoming ASEAN – Gulf Cooperation Council (ASEAN-GCC) Summit and the ASEAN – GCC – China Summit, Mohamad stressed the need for cooperation among ASEAN, GCC, and China. He pointed out that China has a significant market, the GCC possesses capital, and ASEAN is rich in natural resources. He advocated for collaboration among these blocs to strengthen the intra-ASEAN economy and position ASEAN as the fourth largest economy globally by 2030.