Stop Cheating, Mocking & Insulting – Anwar Should Start Negotiate, But First He Has To Lobby For Trump To Pick Up His Call

Stop Cheating, Mocking & Insulting – Anwar Should Start Negotiate, But First He Has To Lobby For Trump To Pick Up His Call


April 8th, 2025 by financetwitter



After announcing sweeping tariffs and triggering global economic meltdown, which hit stock markets, U.S. dollar, oil price and even crypto-currencies, U.S. President Donald Trump left Washington for some round of golf. But not before he fired at Beijing for matching his 34% tariffs. “China played it wrong, they panicked – the one thing they cannot afford to do!” – Trump posted on Truth Social.



Beijing must have done the right thing for Washington to say that. For obvious reason, Mr Trump can’t show that it was he who actually panicked after Beijing unexpectedly retaliated in such a manner. He had expected President Xi Jinping to at most target certain sectors, not a sweeping 34% tariff on all American products going into the Middle Kingdom.



When the Chinese president calmly planted trees to promote environment, whilst the Dow dropped 2,231 points, the world knows who was actually panicking. The Wall Street had lost US$6.6 trillion in just 2 days before the president’s fantasy to earn an easy US$600 billion through a worldwide tariff war could even begin. When grilled about the falling markets, Trump insisted – “sometimes you have to take medicine”.


Regardless whether the egoistic Trump tries to put up a brave face to avoid being laughed at, or it was a plan-gone-wrong to create a small financial crisis to force the Federal Reserve to cut interest rates, the narcissist U.S. president isn’t backing down. He can’t make a U-turn even if he wanted to. He can’t lose face. And that’s bad news to almost all the 180 countries slapped with the tariffs.



The damage is done and there’s no turning back, thanks to one man. The only thing those countries can do is to negotiate with Donald Trump, whose ego needs to be stroked badly. Long pride himself as a dealmaker, billionaire Trump has repeatedly said he was ready to cut tariff deals with every country. Like it or not, this is a man who loves to win by seeing people begging him.



Roughly 48 hours after China retaliated, and wiped off US$6.6 trillion from the Wall Street, more than 50 countries have approached the White House to talk about lowering tariffs. Trump bragged on Sunday evening that he has been busy fielding calls from tech executives and world leaders on tariffs – suggesting he was open to negotiate, on the right conditions.


In Southeast Asia, Vietnam has offered to remove all tariffs on U.S. imports after Donald Trump announced a 46% levy. In addition, Vietnam, which has been accused of having imposed 90% tariffs on U.S. imports, is ready to increase procurement of U.S. products that are in demand by Vietnam, and to create more favorable conditions for U.S. enterprises to do business and invest in the country.



Thailand, hit with 37% tariff, has sent Deputy Prime Minister and Finance Minister Pichai Chunhavajira to the U.S. for discussions with key stakeholders. Indonesia, which saw its currency – Rupiah – fallen to its lowest level against the US dollar since the 1997-1998 Asian financial crises, said it will not retaliate despite Trump’s 32% tariff, but would negotiate with Washington for a better deal instead.



Cambodia, hit with 49% tariff, has quickly announced a significant reduction – to just 5% – in import tariffs on U.S. products as early as last Friday, just two days after Trump’s tariff war announcement. However, Malaysia appears to be pussyfooting, even arrogantly played down the effect of the 24% tariff slapped on the country by the American president.


Malaysian Prime Minister Anwar Ibrahim has made a bold claim – the country will not slip into a recession. Like a broken record, Mr Anwar, who is also finance minister, said Malaysia’s macroeconomic foundations remain strong. Even Singapore – the only country in Southeast Asia with which the U.S. has a trade surplus, but still faces the baseline 10% tariff – dares not say it won’t plunge into a recession.



Yes, who is Malaysia to gloat that it is immune to recession when neighbouring Singapore, the wealthiest country in Southeast Asia, has raised the concerns that its economy could be hit hard due to a US-led global trade slowdown? In fact, Singapore could reap the benefits of Trump’s 10% tariff as trade may be rerouted to Singapore to avoid countries that face high tariffs.



Chinese exports used to be rerouted to Vietnam before being shipped to the US to bypass tariffs. But since Vietnam now faces a tariff of 46%, Chinese exports may be rerouted to Singapore instead, making the tiny island a winner as it attracts firms seeking to diversify supply chains away from more heavily tariffed countries in the region. The difference between 10% and 24% tariff could break or prosper a country, mind you.


Anwar should be glad – and grateful – that Malaysia is slapped with just 24% tariff, lower than Cambodia, Laos, Vietnam, Myanmar, Thailand and Indonesia. But the last thing he should do is to arrogantly blow his own trumpet when every government in the region had quietly and promptly rushed to talk to Washington. It won’t do any good too by mocking Trump for taxing a territory populated with penguins.



Trump is always pro-business, committing to protect the U.S. market. But like the Godfather, he’ll be more generous to those willing to kiss the ring. As Southeast Asia is the epicentre of U.S.-China rivalry, Trump will probably not want to push the region completely into the China orbit. But some kowtowing is still required. So, publicly ridiculing and insulting the POTUS is definitely counter-productive.



It was already bad that a seasoned politician like Anwar Ibrahim could be so reckless in trying to punch Donald Trump with some cheap insults. It becomes worse when Investment, Trade and Industry Minister Zafrul Abdul Aziz tried to cheat by claiming that the actual tariff rate Malaysia imposes on American exports is 5.6%, contrary to the US’ claim of a 47%.


First of all, despite Trump’s claim that his tariffs were “reciprocal,” they were calculated not based on other countries’ tariffs but using a simple formula in which the higher a nation’s trade surplus with the United States, the greater the punishment. If Zafrul does not even understand the basic calculation of Trump’s tariffs, then the lazy and useless minister should be sacked ages ago.



United States imports and exports to Malaysia was roughly US$53.85 billion and US$27.7 billion respectively during 2024, hence the U.S. has incurred a trade deficit. Here’s the calculations – divide 27.7 by 53.85, then divide that by two and round up. Therefore, the tariff rate imposed on Malaysia is about 24% (with discrepancy of US$9 billion).



Even if it was based on tariff on American products as Minister Zafrul said, does it make sense that Malaysia imposes only 5.6%? Malaysia is the second most expensive place to own a car, behind Singapore – a good example why Zafrul was cheating with his claim. He was referring to the U.S.-Malaysia Trade and Investment Framework Agreement signed on May 10, 2004 when he used the 5.6% tariff as his argument.


Why a Honda Accord costs merely US$28,300 (RM126,800) in the U.S., but a whopping RM187,000 in Malaysia? Sure, call it excise duty (65%-105%), import tax (30%), sales tax (10%) or whatever you like, but these are the “unfair high tariffs” that the U.S. has long complained – import restrictions on automobiles under the Malaysian National Automotive Policy to protect “national car” Proton.



The U.S. was also not impressed with government procurement, where foreign companies are required by law to take on a local – Bumiputera (indigenous ethnic Malay) – qualified partner before tenders will be considered. Likewise, the Malaysian government has procurement preference for locally manufactured pharmaceutical products, which discourage the use of imported pharmaceutical (sector which Trump will hit next).



Limiting foreign banks to eight physical branches, restrictions on foreign business of reinsurance, foreign ownership requirements through a 70-30 equity split between foreign investors (limited to 70% ownership) and ethnic Malaysians (must have 30% stake) are just some trade barriers which Trump deemed unfair practices that Malaysia must consider before negotiating with the U.S.


In 2024, the U.S. was the third largest trading partner of Malaysia, accounting for 11.3% of Malaysia’s total trade. America remains one of the major foreign investors in Malaysia. It also ranked second in terms of gross foreign direct investment (FDI) in 2024, as well as fourth largest investor in terms of FDI stock at end-2024. Crucially, Malaysia enjoyed a trade surplus of RM72.4 billion (2024).



While the exclusion of semiconductors (RM45.3 billion or 22.8% of total exports to the U.S.) provides a relief to Malaysia, other sectors to be hit hard will be machinery and equipment (14.5%), optical and scientific equipment (9%), rubber and rubber products (3.9%), furniture products (3.5%), palm oil and palm oil products (1.4%) and plastic and plastic products (1.3%), iron and steel products (1%) and aluminium products (0.8%).



So, it’s a recipe for disaster if PM Anwar were to send a genius like Zafrul to Washington hoping to lower the tariffs by lecturing President Trump that his formula was flawed. As Peter Navarro, Trump’s trade advisor, said – “Don’t say you want to lower the tariffs and be done with it. It’s the non-tariff cheating. This is a national emergency based on a trade deficit that’s gotten out of control because of cheating.”


Anwar’s competence is put to the test when he tries to weaponize ASEAN to negotiate as a bloc with Trump administration. But every government of the Association of Southeast Asian Nations is moving in different directions offering different concessions to cut separate deals with the U.S. president. But there’s still one huge problem with ASEAN chair Anwar trying to make a deal.



Diplomatically, Donald Trump has talked to all leaders in the region – except leaders from Myanmar and Malaysia. Ignorant local analysts who had foolishly and arrogantly said it was not a big deal that Trump refuses to take a phone call from pro-Hamas and anti-Israel Anwar should now understand being a radical “Jaguh Kampung” (village champion) can only get you so far.



For now, clueless Anwar can only reach close associates of Mr Trump to talk about tariffs, a face-saving way to say the Madani government is paying White House lobbyists to do the job. The post of Malaysia’s Ambassador to the U.S. has been left vacant after Nazri Abdul Aziz’s two-term ended on February 10, and was not renewed due to his incompetence. The economic trouble has just begun for the country.