Has PMX’s diplomatic miscalculations trigger Donald Trump’s tariff hike?
IT wasn’t supposed to go up. After months of diplomatic back-and-forth, the Madani government had hoped the US would roll back its steep 24% tariff on Malaysian exports that was first announced in April.
Instead, Washington did the opposite by raising the tariff to 25%.
For a country that lives and breathes exports – from semiconductors to palm oil – that extra blow is more than just numbers on a spreadsheet. It could mean billions in losses, potential layoffs and vanishing investor confidence.
And this time, it feels personal. The tariff hike reads less like a routine trade measure but more like a geopolitical message: Malaysia is being punished.
So what triggered this tariff spanking? Could it be that in Washington’s eyes, Prime Minister Datuk Seri Anwar Ibrahim misread the room?
Cosying up to the wrong crowd
Malaysia, once proud of its non-aligned posture, now looks like it’s picking sides. And not the side the US is on.
Anwar has been eager to position Malaysia within the BRICS orbit – a bloc made up of America’s chief adversaries: China, Russia, Iran and others.
He has visited Russia not once but twice. He even invited Russian president Vladimir Putin to the ASEAN Summit despite the international arrest warrant hanging over the Russian leader for war crimes in Ukraine.
Anwar has also been warming up to Chinese President Xi Jinping. Bilateral visits, public praise and talk of deeper integration have raised eyebrows in Washington.
Add to that of Anwar’s vocal push for de-dollarisation and his hardline pro-Palestine stance, one gets a foreign policy that looks increasingly anti-West.
Whether Anwar sees it that way or not does not matter. Trump’s team possibly does.
Malaysia isn’t “neutral” anymore
We used to walk a careful line. As a small nation and founding member of the Non-Aligned Movement (NAM) and part of the Third World Network, Malaysia knew how to stay friendly with everyone without provoking anyone.
Now, under Anwar, we’re shifting into risky territory. And the US has taken notice.
The tariff hike is possibly a clear sign that Washington is re-calibrating its view of Malaysia – from trusted partner to potential strategic irritant. That’s why countries like Vietnam were spared but Malaysia wasn’t.
And here’s the kicker: regional leaders like Indonesia’s Prabowo Subianto, Singapore’s Lawrence Wong, the Philippines’ Ferdinand Marcos Jr and even suspemded Thai Prime Minister Paetongtarn Shinawatra have all had phone calls with Donald Trump. Anwar hasn’t even managed a single call.
High cost of power politics indulgence
This isn’t about ideology. It’s about consequences. Every time Anwar plays geopolitical chess, it’s everyday Malaysians who absorb the fallout.
The fact is, exporters get squeezed by tariffs, factory workers risk retrenchment, prices rise as importers scramble to stay competitive and foreign investors hold back, unsure where we stand.
This is the quiet damage of a foreign policy that wants to punch above its weight. At the end of the day, Malaysians are left to become pawns and collateral.
Anwar may be trying to carve a reputation as a global leader coming in with guns blazing. But the bill is arriving at our doorstep. Even at the 24% tariff rate level, it’s ordinary Malaysians who will be hit hard, let alone 25% or more.
Because when a small country tries to act like a big power, it needs to remember one thing: the schoolyard bully punches back.
And now, with that tariff gut-punch, the bully has just getting warmed up with everyday Malaysians bracing themselves to getting hit for the slightest of mis-step. – FocusM July 14, 2025
