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Will Malaysia face pressure from US to lean less on China during trade talks?
A high-level trade delegation from Malaysia is visiting Washington to discuss the country’s ‘neutral’ role in global supply chains
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Malaysia can expect to face pressure to boost agricultural imports from the US and align closer to the world’s largest economy as the Southeast Asian nation prepares for a high-stakes meeting with Washington’s trade officials on Thursday.
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US President Donald Trump slapped “reciprocal” tariffs of 24 per cent on most Malaysian goods on April 2, part of a broader wave of duties targeting countries he accused of taking unfair advantage of the American economy.
Although he later announced a 90-day suspension of the tariffs – set to expire in early July – the freeze does not apply to China, which now faces duties of 145 per cent on its exports to the US.
Malaysia’s delegation to Washington will be led by Trade Minister Tengku Zafrul Abdul Aziz, who said on Friday that the meeting would focus on explaining the country’s role as a “neutral” actor that could play an important role in linking Asian and US supply chains.
But the escalating trade conflict between the US and China will make it harder for Malaysia to navigate its dealings with its two largest trade partners.
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“Malaysia and Asean find themselves on the horns of a dilemma, with both the US and China presenting equally undesirable options,” geopolitical analyst Asrul Hadi Abdullah Sani said, referring to the Association of Southeast Asian Nations.
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