Abdul Latif, a senior lecturer at the socio-economic group of the Polytechnic University, suggests that ASEAN should unite to strengthen cooperation in advanced technology to reduce dependence on U.S. tech product imports, as a measure to counter U.S. President Trump's announcement of a new round of tariffs.
He mentioned that under the new U.S. tariffs, the prices of imported products, especially electronic chips and car engines in the manufacturing sector, will increase, but the local market currently lacks these products, so it will be affected.
In an interview with Bernama, he said that to mitigate the impact of rising prices, one alternative approach is for ASEAN countries to cooperate to increase the production of electronic chips and car engines.
He pointed out that to alleviate the impact of rising costs, Malaysia should look for alternative countries.
He said Malaysia should enhance the technological capability of producing these products domestically and export these products to ASEAN countries.
He stated that the global economy is facing a tariff war, and the U.S. is still a major trade partner of our country, thus Malaysia needs to reassess the trade agreements signed with the U.S. while strengthening regional cooperation with ASEAN countries to safeguard its economic interests.
Lee Chong Li: Impact on Our Country's Strategic Position in Global Supply
On the other hand, Dato' Lee Chong Li, Chairman of the Federation of Malaysian Manufacturers Penang Branch, described the U.S.'s decision as a long-term reinforcement of fair and open trade relations between Malaysia and the U.S.
He said the affected sectors will face a high tariff of 24%, leading to a reduction in export volume, putting employment pressure on the affected industries and forcing multinational companies linked to the U.S. to restructure their supply chains.
He noted that the broader logistics supply ecosystem and downstream service sectors may be affected by the new U.S. tariffs.
He said that compared to some ASEAN countries, a 24% tariff rate is still relatively low, but our country is still classified as a penalized category.
He indicated that our country's electronics, rubber-based products, and machinery sectors are direct competitors with countries in the region; as for semiconductors and industrial components, Malaysia plays the role of integrating the supply chain.
He said the implementation of the new tariffs not only disrupts trade into the U.S., but also impacts Malaysia's strategic position in the global supply chain.
He also warned that Malaysian exporters may face pressure from U.S. importers to lower export prices to absorb the 24% tariff, which would squeeze their profits.
He said countries affected by U.S. tariffs may start redirecting their exports to Malaysia and other countries, leading to unfair competition in local industries.