Trump's Tariffs: Malaysia's Moment? Schutte on ASEAN's Strategic Play

KUALA LUMPUR 18 April - When the United States, under President Trump, started putting tariffs (taxes) on goods again, it caused a lot of worry in the world's economy. 

Bernhard Schutte, who represents the World Economic Council (WEC) in Malaysia and leads TAPiO Management Advisory Sdn. Bhd., has looked closely at this situation. He says it creates problems, but more importantly, it gives Malaysia and other ASEAN countries a big chance.

Schutte has spent many years advising governments and big companies. He believes the way the world trades is changing in a big way. This means countries and businesses need to be quick to adapt and have a clear plan for the future.

Why the U.S. Tariffs are Happening: A Sign of Trouble

Schutte thinks the U.S. is using tariffs because it has growing money problems, especially its large national debt, which was about USD 36.22 trillion in early April 2025.

He says, "President Trump is using tariffs because he thinks it will quickly fix the country's issues." However, he describes these actions as "quick, unplanned reactions" that are causing "a lot of uncertainty in the world's financial markets." He suggests these are short-term fixes that might actually cause bigger problems later on, rather than being a well-thought-out strategy.

The World is Changing: Looking at New Trade Partners

Schutte warns that this problem isn't just happening in one place.

"We are seeing a big change in how the world is organized and how countries trade with each other," – Bernhard Schutte

From China and Southeast Asia to Europe and other places, companies and governments have to rethink their long-term plans. Schutte explains, "You need to look at everything: your company, where you operate, your supply chain, and whether the government in your country helps your business."

He believes we are entering one of the biggest shifts in world politics and the economy in a long time. While this might be unsettling, it could also push governments and companies to find new ways to trade, invest, and work together.

ASEAN: Finding New Paths When Things are Unsure

For countries in ASEAN, many of which sell a lot to the U.S., this unpredictable situation is especially disruptive.

Schutte points out how President Trump's policies can change suddenly.

He says, "Trump's statements can change from one day to the next, causing a lot of instability." This, surprisingly, makes America less attractive for investment. Schutte adds, "Businesses need to know what to expect.

Without that, they won't make long-term investment decisions."

He argues that ASEAN countries, especially Malaysia, need to act quickly by finding different markets to trade with. He emphasizes,

"It's important to not rely too much on just one market," and points to opportunities in Africa, Europe, Latin America, and other developing countries.

Malaysia's Smart Position: Neutral and Quick to Adapt

Schutte notes that Malaysia is in a unique position. It's a key player in the world's semiconductor (computer chip) industry, so it needs to be careful in how it works with the U.S.

However, this dependence also gives Malaysia some power, as seen when it was initially excused from some tariffs.

But Schutte believes Malaysia's biggest advantage is its neutral stance in global politics. He explains, "Malaysia has good relationships with all the major global powers: China, the U.S., Europe, India, and other developing nations.

This balanced approach is a major strategic advantage." Like Switzerland, Malaysia's neutrality makes it a safe and appealing place for international businesses that are trying to navigate global tensions.

A Clear Plan for the Future: A Time to Take the Lead

Schutte urges leaders in Malaysia and the European Union to not waste this opportunity.

As the EU looks for new trade and investment partners in Asia, he suggests quickly making new trade agreements and finding more diverse economic connections.

He also encourages small and medium-sized businesses in Malaysia to actively look for partnerships with European companies, especially in Germany, where there's a growing need for reliable partners in Asia. Schutte says, "Many European businesses are actively looking for new partners.

Malaysia needs to step forward and make itself known."

A Call to Action

Ultimately, Schutte believes this is more than just a time of disruption – it's a test of leadership. He says, "Leadership is something you take, not something you're given. Malaysia has a rare chance to support and host international businesses looking for new regional bases."

He imagines Malaysia becoming a "sandbox for international business" – a neutral place where American, Chinese, and European companies can work together, innovate, and succeed, even with global political problems.

Schutte concludes, "Malaysia's neutrality isn't just a political position – it's something valuable it offers. By using that position wisely and diplomatically, Malaysia can change from just being a part of global trade to being a central point in the next stage of how the world's economy evolves." - DagangNews.com