Anwar warns US tariffs risk straining China-Malaysia ties

Prime Minister Anwar Ibrahim said the United States' move to impose retaliatory import tariffs on several countries, including Malaysia, could strain Malaysia’s trade and investment relations with China.

He said the high tariffs and taxes introduced by the US would have direct implications for Malaysia’s economy, which is heavily reliant on international trade.

“This situation not only affects China’s economy but also impacts Malaysia, even though we are temporarily exempted from the implementation of these tariffs.

“When high tariffs are imposed on China, our trade and investment ties with the country are inevitably affected,” he said at the Kelantan state-level Aidilfitri Madani 2025 celebration in Pantai Irama yesterday.

He added that, as a trading and exporting nation, Malaysia remained highly vulnerable to fluctuations in global trade policy.

“We are an exporting and trading country. When the US imposes high tariffs on China, of course, we will also feel the impact.

“Fortunately, the US has temporarily suspended the implementation of these tariffs on several Asean countries, including Malaysia. However, China remains subject to the tariffs,” he added.

US President Donald Trump recently announced a 90-day suspension of higher tariffs on selected countries, even as the trade war with China escalates.

Malaysia was earlier subjected to a 24 percent reciprocal tariff. While that hike has been paused, a flat 10 percent baseline tariff still applies to all countries, except China, which remains subject to the higher rate.

Xi’s visit

Meanwhile, Foreign Minister Mohamad Hasan said Chinese President Xi Jinping's state visit to Malaysia next week will strengthen Malaysia-China bilateral trade ties.

He said the visit had been planned for a long time.

"With Malaysia as the Asean chair this year, we have many frameworks that we need to manage, especially involving Malaysia-China and Asean-China.

"In May, the Asean Gulf Cooperation Council-China Summit will be held to ensure that the trade relations are strengthened and that Asean countries can increase trade with each other, especially in the current uncertain global economic situation," he said.

He told reporters this when met at the Foreign Ministry and the Rembau Parliamentary Constituency Aidilfitri open house at Kampung Tanjung, Rantau, today.

Previously, the media had reported that Malaysia will receive Xi's state visit, scheduled to begin from April 15 to 17.

Government spokesperson Fahmi Fadzil said the state visit is not only highly anticipated, but also reflects the good trade relations between Kuala Lumpur and Beijing.

- Bernama

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