KUALA LUMPUR, Feb 4 — Prime Minister Datuk Seri Anwar Ibrahim today said that Malaysia will take a “centrality stand” in the tariffs war between the United States and its rival China, and neighbours Mexico, and Canada.
He said Malaysia can weather any global economic turmoil by having a diverse network of trade ties with other countries.
“Malaysia’s policy, as agreed upon by Asean, is centrality. This means adopting a free and neutral approach while establishing networks with all countries.
“Although we may appear closer to China, Brazil, and South Africa, as well as Canada and Mexico, our relations and engagement with the US continue to this day,” he said during the Prime Minister’s Question Time in the Dewan Rakyat here.
Anwar, who’s also the finance minister, was responding to Bagan MP Lim Guan Eng, who asked Malaysia’s position on the issue and measures will be taken to protect Malaysia’s economy.
Yesterday, Lim had warned that the global trade war sparked by newly inaugurated US President Donald Trump’s tariffs could have the same devastating effects on inflation and economic growth as the Covid-19 pandemic.
The former finance minister said that while Malaysia is not directly targeted by the new tariffs, it is at risk due to its deep trade ties with China, Canada, and Mexico, all of which face steep US import duties.
Apart from having trade ties with other countries, Anwar also said today that the government is planning to strengthen development within the country to avoid any economic effects from the trade war.
Last week, US President Donald Trump planned to impose broad tariffs on major trading partners Canada, Mexico and China, citing an “extraordinary threat” from illegal immigration and drugs.
Canadian and Mexican exports to the United States will face a 25 per cent tariff, although energy resources from Canada will have a lower 10 per cent levy.
On Sunday, Canada’s Prime Minister Justin Trudeau said the country will hit back at US tariffs with 25 per cent levies of its own on select American goods.
However, Trump suspended his threat of steep tariffs, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.
US tariffs on China are still due to take effect within hours.
