Malaysia Seeks Broader Economic Diversification Amid U.S.-China Trade and Tariff Tensions

Malaysian PM Anwar Ibrahim with Indonesian presiden Prabowo Subianto. ASEAN will convene its leaders to discuss Trump's Tariffs days before Xi bilateral visit to Malaysia.
Malaysia PM, Anwar Ibrahim, left, with Indonesia's President, Prabowo Subianto, in Kuala Lumpur, January 27, 2025. ASEAN will convene its leaders to discuss Trump's Tariffs days before Xi bilateral visit to Malaysia. (Photo: AFP)

As Malaysia strengthens its economic engagement with China, it faces increasing pressure from U.S. President Donald Trump’s renewed tariff threats.

Prime Minister Anwar Ibrahim signaled on Tuesday that Malaysia will not be caught in a binary trade war but will instead push for broader economic diversification.

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