KUALA LUMPUR: The United States has declined to engage in tariff negotiations with Asean as a unified bloc, opting instead to pursue bilateral discussions with individual member states, the Ministry of Investment, Trade and Industry (Miti) revealed.
The US made its stance clear during a Malaysian trade delegation’s meetings with the US Trade Representative and the US Department of Commerce that were held in Washington recently, said Miti director of bilateral economic and trade relations Raveendran Nair, who was part of the team.
“The US has made it clear that it does not wish to engage in negotiations with us as a bloc. Instead, it prefers bilateral discussions. Approaching them as a group could be perceived as an attempt to gang up against the US, leaving us with little choice,“ he said during a panel discussion at a forum titled “Beyond the Headlines on US Tariffs: What’s Next for Malaysian Businesses and the Global Economy?” organised by Hong Leong Bank Bhd today.
Raveendran said that while Asean operates as a regional bloc, each member state has its own unique economic interests, product focus and tariff structures, necessitating bilateral negotiations.
“We convened the Asean Economic Ministers Meeting to establish a common position, which was then communicated to the US. However, the US remained firm in its preference for bilateral negotiations. As such, our options in this matter are limited,“ he added.
Raveendran said Malaysia raised concerns about the impact of tariffs on US-owned companies operating in Malaysia, especially in the electrical and electronics sector.
“To a certain extent, they do understand our position. But as I mentioned earlier, their stance is rooted in the ‘Make America Great Again’ agenda. Their priority is to bring manufacturing back to the US and encourage reinvestment within their own borders.”
He said the delegation conveyed the message that relocating operations is not as simple as shutting down and restarting elsewhere. “Such a move would have significant repercussions on the global supply chain.”
However, Raveendran said the US indicated that negotiations could proceed but the details remain confidential.
“I can’t disclose any of the contents because we signed a non-disclosure agreement.”
Raveendran said the talks are still at a very early phase.
“Hopefully, we’re looking at a positive outcome. But just to indicate, SOC did mention that most probably, the 10% tariff will remain for the entire world as the best-case scenario,“ he added.
The focus now, Raveendran said, is on negotiating modifications to reciprocal tariffs.
Malaysia is also watching how other Asean members and global players are positioning themselves under the new tariff environment, he said.
“Among Asean, we’re currently number three. So there’s a slight advantage for Malaysia.” he added.
