Kuala lumpur: Bilateral ties between Malaysia and the United States are likely to be strained following the U.S. administration’s imposition of a 25 percent tariff on Malaysian exports, according to analysts.

According to Namibia Press Agency, Malaysia has limited leverage against the unilateral decision by the U.S., prompting analysts to urge the country to deepen ties with other key trade partners and build economic resilience against such external disruptions. The tariffs and other disruptive policies are anticipated to persist as a long-term trend.

Economist Samirul Ariff Othman mentioned that although Malaysia has avoided emotional retaliation, continued provocation or further economic pressure may compel the government to adopt a tougher stance. “Quiet diplomacy can only go so far. Should the U.S. persist, Malaysia will need to recalibrate its strategic alignments,” he said.

Khazanah Research Institute Deputy Director of Research Yin Shao Loong noted that the tariffs appear to be driven by the U.S. administration’s failure to meet its own deadlines for tariff negotiations, suggesting that negotiations are likely to continue and eventually make progress.

Meanwhile, Federation of Malaysian Manufacturers President Soh Thian Lai expressed concern that the latest round of tariffs risks destabilizing business links and supply chains. Feedback from manufacturers during the initial implementation of the 10 percent tariff already pointed to serious concerns over the sustainability of export operations.

“This latest escalation risks further destabilizing an already fragile industrial landscape, severely impacting export competitiveness and placing additional strain on manufacturers,” he said. Soh added that while strategic exports such as semiconductors were exempted, the broader ecosystem supporting the semiconductor industry, including parts, machinery, and services, remains exposed to disruption.

The Institute for Democracy and Economic Affairs (IDEAS), a Malaysian think-tank, cautioned the government against accepting terms imposed by the U.S. that could harm Malaysia’s long-term strategic interests. It also emphasized the need for a collective defense by the Association of Southeast Asian Nations (ASEAN) against disruptive policies.

“The underwhelming outcomes from bilateral negotiations for Malaysia and other countries reinforce the need for collective action to combat Washington’s divide-and-conquer strategy. We cannot allow fragmented engagement to weaken ASEAN’s position on the global stage,” it said in a statement. “Malaysia must continue to avoid being drawn into retaliatory trade barriers or a false choice between major powers, and continue to diversify and deepen partnerships with countries that share its interest in open and mutually beneficial trade,” it said.