LETTER | There is a Malay saying, “Gajah sama gajah berjuang, pelanduk mati di tengah-tengah” (When major powers battle, smaller parties suffer).

A lot has been said about the Liberation Day tariff. What followed was the largest two-day loss in US stock market history and spillovers onto the global markets.

Now, in Geneva, both sides have returned to some level of reason and common sense, but have not changed their tough stance on national interest.

What bothers me is when a prominent diplomat from a so-called “friendly neighbour” rubbished Prime Minister Anwar Ibrahim’s proposal for Asean to collectively discuss tariffs with the US. He added that Anwar can never resist the temptation to grandstand. This is unbecoming and graceless for a prominent diplomat since Malaysia is holding the Asean chairpersonship.

His behaviour epitomises the Asean “illusion of solidarity”, exposing a lack of collective clout. By the way, his country, a strong strategic partner of the US, has the lowest tariff at 10 percent.

This is clearly evident when, at a special AEM Meeting on April 10, 2025, Asean agreed to engage in “frank and constructive dialogue” with Washington. In response to the economic repercussions that may arise, Asean will continue to work together more closely, with greater unity and solidarity and remain committed to Asean’s rule-based trade.

Now, where is the unity and solidarity?

Thailand was the first Asian country to establish ties with the US in 1818. Signed their first trade treaty in 1833 and granted the US numerous privileges until the present day. The US always reiterated that Thailand is its “truly oldest friend in the region”. Article One of the treaty reads: “The sincere friendship which exists between the two sovereigns shall be perpetual, as long as heaven and earth endure.”

What happened to this sincerity?

Thailand is among the hardest hit in Asean with a 36 percent tariff.

This is an extortion racket of great proportions when there are also concurrent deals in Vietnam (tariff @ 46 percent) such as Boeing jets, Starlink, and a US$1.5 billion Trump luxury resort.

To put it in perspective, trade accounts for only 25 percent of the US GDP in 2023. Look at it from another angle, the tariffs imposed are a punishment to Americans who choose to spend their own money to buy things, but Trump, acting as a true dictator, tries to restrict them.

Uncle Sam’s costly misstep

The US has a host of other problems that it is trying to solve.

Uncle Sam may not have predicted or been aware of the impact this Liberation Day tariff would have on the US Treasury securities and short-term US dollar funding. Left unattended, it could trigger a freezing up of financial markets, followed by a risk of a serious financial crisis.

After the Geneva meeting, Washington declared it had secured another good deal for the American people that reduces tariffs, ends retaliation, and sets Americans on the path for a truly free, fair trade. Are they serious?

They have actually lost their pragmatism, call for democracy, and being conciliatory. Note that US foreign direct investment (FDI) in China was US$126.9 billion in 2023.

Back to Asean, we must truly practice the principles of openness, equality, cooperation, and multilateralism that are entrenched in the Asean DNA.

Compared to the 2018 US-China trade tension, the current crisis is more pronounced, with significant uncertainties. Trade policies are now very unpredictable.

Asean should strongly urge the World Trade Organisation (WTO) to ensure members respect its rules to maintain credibility. The US has clearly gone against the “non-discrimination” rule by arbitrarily pushing tariffs to the roof. Authorising retaliation when a country does not comply with a ruling is not the answer.

Malay folklore is full of accounts of how the mousedeer gets the better of the other animals by his intellect. There is also a written epic in Malay, the “Hikayat Pelanduk Jenaka” or “Tale of the Wily Mousedeer”, which is a highly sophisticated literary composition available in the British Library.

Can Malaysia be that pelanduk and tell our neighbour that it is seemingly impossible to discuss tariffs with 75 countries in 90 days, or is it really 75?

What say you?

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.