On 2 April 2025, United States (US) President Donald Trump announced reciprocal tariffs on products from 90 countries.
Malaysia was also affected, although it was given a 90-day reprieve except for China which was subject to a 145% tariff.
The Federation of Malaysian Manufacturers (FMM) sees this reprieve as a critical opportunity for the government to act to protect the country's industrial sector.
FMM proposes four main steps, in the face of Trump's tariff war.
The first step is the implementation of targeted assistance by continuing to support the electrical, rubber and machinery industries that depend on the US supply chain.
In addition, the government needs to establish a National Supply Chain Council, to identify weaknesses in the workforce.
Next, the role of ASEAN with Malaysia should use its position as ASEAN chairman, to propose the establishment of a regional council.
The final step, Malaysia needs to establish proactive export protection as a precautionary measure, and provide protection to key export destinations.
In conclusion, FMM is confident that with this strategic move, the Malaysian manufacturing sector will be able to remain competitive in the global supply chain and be able to overcome Trump's trade tariffs.
