Malaysia, facing a punishing 24 per cent tariff on its exports to the United States, announced on Friday that it would increase its imports of American goods instead of imposing retaliatory tariffs – signalling a weakening of any united regional front against the pressures of a trade war.
Southeast Asian nations are increasingly succumbing to external pressures and pursuing individual agreements with the US as President Donald Trump’s White House threatens blanket levies on export-dependent countries and China calls on its regional allies to call Washington’s bluff.
On Friday, Malaysia said it would negotiate ways to reduce its US$25 billion trade surplus with the US, including by easing access for American goods coming into the country, as it hunts for a reduction or exemption to tariffs.
The levies are likely to crush US demand for everything from furniture to scientific equipment and electric heaters, and shred growth forecasts.
Malaysia’s trade ministry sent a delegation to Washington this week, led by Trade Minister Tengku Zafrul Abdul Aziz, who carried a message of “openness to negotiate”.
