KUALA LUMPUR: The United States (US) insisted on bilateral discussions with Asean's individual member states and refused to negotiate with it as a regional bloc on the recent reciprocal tariff move, said the Ministry of Investment, Trade and Industry (MITI).
Director of Bilateral Economic and Trade Relations Raveendran Nair said Malaysia, the third largest economy in Asean, has taken an active role in the discussions, sending a ministerial delegation to Washington on April 24.
"We have to negotiate on a bilateral perspective. So if we go as a (Asean) bloc, they say you're ganging up against the US. So we have no choice.
"Furthermore, even though Asean is a bloc, member countries have different interests. They have different products and tariff rates. So they have to negotiate individually also," he said during the panel discussion at the Hong Leong Bank forum themed "Beyond the Headlines on US Tariffs: What's Next for Malaysian Businesses and the Global Economy".
In Washington, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz led a delegation to a high-level meeting with US Secretary of Commerce (SoC) Howard Lutnick and US Trade Representative Jamieson Greer on addressing the tariff issue.
During the meeting, Tengku Zafrul stressed the importance of continuous discussions and reiterated Malaysia's openness to find constructive solutions in addressing US concerns.
Raveendran said Malaysia raised concerns about the impact of tariffs on US-owned companies operating in Malaysia, especially in the electrical and electronics (E&E) sector.
"For the E&E sector, we explained that the majority of the companies are US companies. So if you (US) impose the tariff, that means you are imposing tariff on your own companies in Malaysia.
"Which to a certain extent they do understand, but they go back to the "Make America Great Again". They want the manufacturers to go back and invest in the US. But we did explain to them that it's not that easy. It will have a huge impact on the supply chain," he said.
He added that the SoC was open for the negotiations but MITI is unable to disclose any contents of the negotiations due to the non-disclosure agreement.
"Negotiation is ongoing. So, whatever the final decisions will go back to the government. We are just negotiating. We are not making any decisions. The decision will be made by the government. As of now, it's still at the initial stage.
"We are looking forward to a positive outcome. However, the SoC did mention that most probably the 10 per cent tariff will remain for the entire world," he said.
Meanwhile, Small and Medium Enterprises Association Malaysia (SAMENTA) chairman of International Trade Eugene Tan expressed deep concern over the impact of renewed US tariff threats, both to companies that export directly or indirectly to the US market.
"Those exporting to the US are extremely worried, as the tariffs represent a direct cost and for those that do not directly export to US, the concern is much more on the economic outlook of the country and how this will play a part in a slowdown and the possibility of dumping of goods into Malaysia from China," he said.
Tan said the government needs to implement protective measures for local industries, including the services and retail sectors that face market disruptions and aggressive foreign competition.
While the government has announced several initiatives for the manufacturing sector, Tan said SAMENTA are concerned that the services sector is being overlooked despite facing similar cuts from US clients.
Source: https://www.nst.com.my/business/economy/2025/05/1213449/us-prefer-one-one-talks-refuses-asean-bloc-tariff-negotiations-miti