A prominent think tank has raised concerns regarding the effectiveness of Malaysia’s ongoing tariff negotiations with the United States, cautioning that the talks appear to lack transparency and may be driven more by political motives than sound economic reasoning.
In a formal statement, the Institute for Democracy and Economic Affairs (IDEAS) highlighted that the marginal difference between the initial 24% tariff imposed in April and the final 25% rate announced on Monday—despite several months of bilateral discussions—indicates limited substantive progress. The institute described the trade talks as opaque and insufficiently consultative.
IDEAS further urged the Malaysian government to uphold transparency throughout trade negotiations, maintain policy consistency, and actively engage with regional partners to safeguard the nation’s long-term economic interests.
Prior to the commencement of negotiations in May, Minister of Investment, Trade, and Industry, Tengku Zafrul Aziz, acknowledged that the discussions were subject to a non-disclosure agreement. However, he assured that efforts would be made to brief the relevant parliamentary select committees and caucuses on the developments of the tariff talks.
In its statement, IDEAS stressed that Malaysia must avoid being drawn into retaliatory trade measures or forced into choosing sides between global powers. Instead, the country should remain committed to broadening and deepening trade partnerships with nations that support open, rules-based, and mutually beneficial economic cooperation.
IDEAS Deputy Director of Research, Stewart Nixon, emphasized the importance of Malaysia’s leadership role as ASEAN Chair this year. He called for coordinated and decisive regional action in response to U.S. tariff measures.
“The disappointing outcomes of bilateral negotiations—both for Malaysia and other affected countries—underscore the urgent need for collective ASEAN action to counter Washington’s divide-and-conquer strategy,” Nixon stated.
“We must not allow fragmented engagement to erode ASEAN’s position and credibility on the global stage.”
On April 2, U.S. President Donald Trump announced a 24% tariff on specific Malaysian exports. This measure was temporarily suspended for 90 days to facilitate negotiations. That pause concluded on Monday, when President Trump issued an official letter to Prime Minister Anwar Ibrahim, confirming a revised 25% tariff on Malaysian exports effective August 1.
Notably, Singapore and the Philippines were the only two ASEAN member states that did not receive a tariff notification letter from the U.S. president on Monday. These two countries had also been assigned the lowest tariff rates under the initial April announcement—10% for Singapore and 17% for the Philippines.
