.avif)
How Malaysians are reacting to Trump’s new tariffs on Southeast Asia
On April 2, 2025, President Donald Trump announced sweeping new tariffs targeting Southeast Asian countries. The move, framed as a strategy to correct trade imbalances and protect American interests, has already triggered widespread reaction across the region. Here’s a breakdown of the tariffs:
- Vietnam: 46%
- Cambodia: 49%
- Laos: 48%
- Myanmar: 44%
- Thailand: 37%
- Indonesia: 32%
- Brunei: 24%
- Malaysia: 24%
- Philippines: 17%
- Singapore: 10%
- Timor-Leste: 10%
With Malaysia facing a 24% tariff, we asked 1,001 Malaysians how they feel about the announcement and what it might mean for their daily lives.
Most Malaysians were already aware of the tariffs
Even before the survey, 72% of Malaysians said they had heard about the new tariffs. Awareness was highest among older respondents, especially those aged 45 and above. and among men. In contrast, younger Malaysians (aged 16 to 24) were the least likely to know about the development.
Concern is widespread, but varies in intensity
When asked how they felt, the majority expressed some level of concern. While 18% said they were very concerned, a larger group (45%) said they were somewhat concerned. Only 7% said they weren’t worried at all. The most concern came from those aged 35 to 54, a group likely balancing both household and career responsibilities.
Most expect a negative impact on Malaysia’s economy
A striking 74% of respondents said they believe the tariffs will negatively affect Malaysia’s economy. This belief held steady across all age groups, but was slightly more pronounced among those aged 55 and above. The sense of economic pessimism is clear.
Many anticipate higher prices for everyday items
When it comes to day-to-day impact, Malaysians are bracing for price hikes. A full 86% expect prices for everyday goods to increase- 25% significantly, and 61% somewhat. Only 3% believe prices might drop.
Spending habits are likely to shift
Rising prices could change consumer behavior. Over half (59%) say they would switch to local alternatives if imported goods become more expensive. Another 15% say they’ll cut back on imported purchases altogether. Just 10% plan to continue buying as usual. Notably, older Malaysians are the most likely to pivot toward local products.
Technology and food seen as most at risk
When asked which product categories would be most affected, respondents pointed to electronics and gadgets (65%) at the top of the list. This was followed by food and beverages (46%), automobiles (45%), and household items (43%). Younger Malaysians were especially concerned about tech and fashion.
Support for local products is strong
While the tariffs are seen as a threat, they could also drive support for Malaysian businesses. A resounding 88% of respondents said they’re more likely to buy Malaysian-made products in response to the tariffs. Only a small fraction (3%) said they still preferred imported goods.
Malaysians want businesses to absorb some of the cost
There’s a strong expectation that businesses will take action. Many want companies to absorb the extra cost and maintain current pricing (37%), while others expect promotions and discounts (36%). Still, 37% also believe companies will pass the cost on to consumers. Some are even bracing for lower product quality as a cost-saving measure.
Government confidence is lukewarm
When it comes to the government’s ability to manage the situation, Malaysians are split. Only 9% said they’re very confident, while 47% expressed moderate confidence. A significant 43% said they have little or no confidence in the government’s response.
Subsidies and price controls top the wishlist
If things get worse, what do Malaysians want their government to do? The top answers included implementing price controls (38%), offering subsidies (37%), and investing in local industry to reduce reliance on imports (36%). Some (27%) also hope for new trade deals, while a smaller group (17%) wants retaliatory tariffs. Just 11% think no action is needed.
What lies ahead
As the ripple effects of Trump’s tariffs begin to unfold, Malaysians are watching closely. While concern is high and expectations are clear, there’s also a willingness to adapt- from changing shopping habits to backing local businesses. The coming months will be a test not just for economic resilience, but for how government and industry respond to an increasingly complex global trade landscape.
