Trump S India Tariff Blunder A Lesson For Malaysia

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IN A bold and controversial move that has sparked international criticism, United States (US) President Donald Trump recently imposed steep tariffs reportedly as high as 50% on a broad array of Indian exports to the US.
These included everything from textiles and seafood to engineering goods, a clear departure from the traditional US-India economic partnership. The policy, combined with Trump’s inflammatory comments portraying India as a “dead economy” and accusing it of drifting into China’s orbit, sent shockwaves through diplomatic circles.
While the immediate economic impacts are severe hurting Indian exporters and disrupting global supply chains but the long-term damage may be far more geopolitical.
Trump’s actions have not only alienated the world’s largest democracy but may also accelerate India’s pivot toward multi-polar partnerships, including deeper ties with Russia, China, and other BRICS nations.
The New York Times article analysing this situation underscored the irony of Trump’s strategy: in attempting to coerce India into more favourable trade terms, he may have undermined one of America’s most promising strategic alliances in Asia.
Instead of isolating China, Trump’s aggressive posture risks pushing India closer to it. The analysis highlighted how this misstep represents not just a trade war, but a failure to understand India’s evolving global role and its desire for strategic autonomy.
(Image: Reuters/Adnan Abidi)India’s recent actions participating in Shanghai Cooperation Organisation summits, hosting Russian and Chinese leaders, and reaffirming its commitment to the Global South are signals of a broader recalibration.
The Times article pointed out that New Delhi’s foreign policy, long grounded in non-alignment, now seeks multi-polarity not bipolar rivalry.
This diplomatic breakdown should be of particular interest to Malaysia. As a small but strategically placed nation in Southeast Asia, Malaysia has long navigated the great power dynamics of the Indo-Pacific with caution and pragmatism. Trump’s blunder offers three key lessons for Malaysian policymakers.

First, the episode shows the danger of transactional diplomacy. Trump’s tariff-first approach treats allies like adversaries, sacrificing long-term geopolitical stability for short-term domestic political gain.
Malaysia must continue resisting such short-sighted tendencies by anchoring its foreign relations in mutual respect, shared growth, and regional stability.
Unlike the US, Malaysia has taken a more measured and consistent approach to India: an approach now vindicated.
Second, the episode underscores the importance of strategic alignment over rhetorical alliances. The US and India have been lauded as “natural allies” for years, especially as democracies balancing China’s rise. But this rhetoric means little when leaders act in ways that betray trust.

Malaysia, in contrast, has been building its India ties patiently: expanding trade, enhancing naval cooperation, and nurturing people-to-people relations. Rather than loudly proclaiming alignment, Malaysia has quietly laid the groundwork for a resilient partnership with India.
Third, Malaysia should see India not just as a bilateral partner, but as a cornerstone of regional balance in a multi-polar world. India is no longer just an emerging market but it is now a geopolitical counterweight in the Indo-Pacific.
For Malaysia, which sits at the crossroads of maritime trade and great power competition, engaging India more deeply offers strategic hedging against regional volatility.
The US-India fallout is a reminder that nations like Malaysia must diversify their partnerships, not depend on a single hegemon.

India’s increasing significance to Malaysia is evident across various sectors. In the financial year 2023–2024, bilateral trade between the two countries is approaching US$20 bil, with strong prospects for further growth in areas such as palm oil, digital technology, and pharmaceuticals.
Culturally, India remains a vital source of tourism and people-to-people exchanges, while the historical presence of the Indian diaspora in Malaysia deepens these ties.
Strategically, India’s navy has engaged in joint exercises with Malaysia, supporting shared interests in maritime security, especially in the vital Strait of Malacca.
Moreover, the digital and industrial futures of both countries are becoming more aligned. Malaysia’s bid to become a semiconductor hub fits naturally with India’s push to build a robust semiconductor and electronics manufacturing ecosystem.

(Image: The Economic Times)As global supply chains decouple from China, there is real opportunity for joint innovation and investment between the two democracies. With Malaysia’s ports and infrastructure and India’s engineering and digital capacity, the synergy is clear

Additionally, food security and agriculture cooperation are emerging as new pillars of India-Malaysia relations. As global grain and rice markets fluctuate, India’s role in securing stable food exports especially to Southeast Asia makes it an indispensable partner.
Malaysia, facing increasing climate vulnerabilities, should build deeper agricultural and environmental cooperation with India to enhance resilience.
Perhaps most importantly, India’s geopolitical outlook aligns with Malaysia’s commitment to ASEAN centrality and multi-polar engagement. Both countries favour dialogue, inclusive growth, and non-interventionist diplomacy.
While the US-China rivalry threatens to split the region into camps, India offers Malaysia a partner that can balance power without demanding allegiance.

Trump’s recent comments have likely reminded Indian policymakers that the US cannot always be relied upon for steady partnership. That creates a diplomatic opening that one Malaysia would be wise to seize.
In sum, the US blunder in handling India serves as a cautionary tale and a strategic signal. While Trump’s tariff war may be rooted in domestic politics, its ripple effects are international.
For Malaysia, this moment calls for clarity and courage: to deepen ties with India, avoid the temptations of transactional diplomacy, and lean into a regional future where middle powers shape the balance not merely respond to it.

R Paneir Selvam is the principal consultant of Arunachala Research & Consultancy Sdn Bhd, a think tank specialising in strategic national and geopolitical matters.
The views expressed are solely of the author and do not necessarily reflect those of  MMKtT.
- Focus Malaysia.

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