President Donald Trump’s return to the White House has reenergized his trademark brand of economic nationalism this time, with sharper geopolitical edges. One of his administration’s early foreign policy actions in his second, non-consecutive term is a renewed crackdown on countries aligning with BRICS, a coalition of emerging economies challenging U.S.-led global financial dominance.
Framing BRICS as “anti-American,”
Trump recently announced a sweeping set of new tariffs, including a punitive
25% levy on goods from Malaysia, aimed at deterring participation in
alternative trade blocs and efforts at de-dollarization.
While major BRICS members China,
Russia, India, Brazil, and South Africa have dismissed the notion that their
bloc is inherently adversarial to the U.S., the implications of Trump’s
announcement extend well beyond BRICS’ core membership.
Countries like Malaysia, which
have recently deepened ties with BRICS, are now caught in a strategic squeeze.
For Malaysia, which aspires to full BRICS membership and currently serves as
the 2025 ASEAN Chair, the choice is not merely economic it’s existential to its
foreign policy identity and development strategy.
Malaysia’s BRICS Engagement:
Strategic Vision or Risky Gamble?
Malaysia’s engagement with BRICS
did not emerge suddenly or ideologically. Since 2024, under the leadership of
Prime Minister Anwar Ibrahim, the country has sought to become a full member of
the bloc.
The rationale is clear: BRICS
offers an avenue to boost trade, attract foreign investment, and secure access
to development financing through the New Development Bank (NDB). For Malaysia a
middle-income country with ambitious infrastructure plans and limited fiscal
space these tools are not just attractive; they are necessary.
In 2024, Malaysia-China trade hit
RM396.14 billion, underscoring the strength of their 50-year diplomatic and
economic partnership. Meanwhile, bilateral trade between Malaysia and India
reached US$20.01 billion in the financial year 2023–2024.
These figures reinforce
Malaysia’s strategic engagement with BRICS nations, particularly China and
India, as it seeks to diversify trade and strengthen regional economic
integration.
By aligning with BRICS, Malaysia
envisions reducing tariff and non-tariff barriers, improving technology
transfer, and advancing collaboration on digital infrastructure, renewable
energy, and industrial innovation.
Furthermore, BRICS’ advocacy for
a more equitable and multipolar global system resonates with Malaysia’s
long-standing diplomatic principles.
As Chair of ASEAN in 2025,
Malaysia has positioned itself as a voice for the Global South, promoting
inclusive multilateralism and regional cooperation.
Participation in BRICS aligns
with that broader vision. However, the economic and political benefits of BRICS
alignment now risk being undercut by direct U.S. retaliation.
Trump’s Tariff Offensive: A
Geopolitical Power Play
Trump’s tariff plan includes a
25% levy on Malaysian goods, signalling pressure on Malaysia for its growing
ties with BRICS and perceived shift from U.S. alignment, alongside similar
actions targeting other emerging economies.
These tariffs, which Trump
described as adjustable “upward or downward depending on our relationship with
your country,” send a strong message: economic engagement with BRICS or even
perceived closeness to non-Western alliances will be met with economic
punishment.
Malaysia, whose economy is
tightly linked to the U.S. through exports of electronics, semiconductors, and
machinery, is now under direct pressure.
Malaysia’s Balancing Act:
Pragmatism Over Partisanship
Malaysia’s foreign policy has
historically prioritized non-alignment, strategic neutrality, and multilateral
cooperation.
As a founding member of ASEAN and
an active participant in global trade frameworks like the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional
Comprehensive Economic Partnership (RCEP), Malaysia has always sought to avoid
being drawn into great power conflicts. Its outreach to BRICS is meant to
complement not replace its existing Western partnerships.
However, the Trump
administration’s increasingly binary approach to global alliances leaves little
room for nuanced diplomacy. Countries are expected to “choose sides,”
undermining the space for independent foreign policy, especially for middle
powers like Malaysia.
Malaysia does not view BRICS as a
geopolitical alliance in opposition to the West but rather as a pragmatic
mechanism for development, trade diversification, and regional influence.
Its participation focuses on
issues such as climate financing, smart infrastructure, and digital
transformation areas of global concern that should not be seen as hostile to
American interests.
ASEAN as a Diplomatic Buffer
In this tense environment,
Malaysia’s role as ASEAN Chair could prove pivotal. ASEAN, with its
consensus-based decision-making and commitment to neutrality, can serve as a
stabilizing force amid intensifying geopolitical rivalry.
Malaysia has the opportunity to
promote a framework where regional cooperation is not dictated by zero-sum
choices but by shared developmental goals.
Through ASEAN, Malaysia can push
for constructive dialogue between BRICS and non-BRICS countries in Southeast
Asia.
It can champion an agenda centred
on inclusive economic growth, sovereignty, and the avoidance of coercion principles
that resonate with both Western and non-Western nations.
Economic Diversification and Resilience
Trump’s tariff ultimatum also
exposes the vulnerabilities in Malaysia’s export-dependent economy. Malaysia
must broaden its trade relationships, particularly across Asia, the Middle
East, Africa, and Europe, to reduce reliance on any single partner.
Internally, investment in
high-value industries such as advanced manufacturing, digital technology, green
energy, and biotechnology will be critical. These sectors not only hold
potential for long-term growth but also offer greater insulation from external
shocks be it tariffs, sanctions, or global supply disruptions.
Ultimately, Malaysia’s engagement
with BRICS is about expanding its strategic options, not choosing ideological
sides. In an increasingly fragmented global order, middle powers like Malaysia
must remain agile, assertive, and principled.
The challenge lies in defending
national interests while avoiding entanglement in great power rivalries.
Trump’s tariff threats may serve domestic political aims or be part of a
broader strategy to reassert American primacy.
But for countries like Malaysia,
they are a test of resilience, independence, and diplomatic skill. Success will
depend not just on avoiding confrontation, but on shaping a foreign policy
rooted in balance, development, and sovereignty.
In navigating this turbulent
moment, Malaysia must continue to engage constructively with both the U.S. and
BRICS, reinforce its commitment to multilateralism, and remain firm in its
pursuit of a global order that allows for diversity, dialogue, and peaceful
cooperation.
08.07.2025
Kuala Lumpur.
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