By Tun Faisal Ismail bin Aziz

KUALA LUMPUR:  For years, U.S. diplomats and think tanks lectured us about the dangers of the “Chinese debt trap.” They painted dark pictures of ports, land and railways seized, sovereignty eroded, and national interests sold to the highest bidder. 

Yet today, the real threat to Malaysia’s independence does not come from Beijing. It comes from Washington.

Under the pretext of “tariffs” the U.S. is holding a gun to Malaysia’s head: commit USD 240 billion in purchases or continue to face punishing tariffs of 25 percent on our exports.

Even if we agree, the tariff only drops to 19 percent which is an unsatisfactory concession in exchange for an economic ransom the size of our national gross domestic product (GDP). 

This is not trade, it is extortion and economic warfare dressed in diplomatic language.

Let’s be clear that this USD 240 billion is not an investment, it’s forced consumption. There will be no financial returns. It is billions we do not have, spent on goods we do not need, solely to keep the U.S. happy and to satisfy the ego of President Donald Trump. 

Every ringgit diverted to this so-called deal is a ringgit stolen from our schools, our hospitals, our infrastructure, and our people. It is the wholesale transfer of Malaysia’s development budget into U.S. pockets.

Over time, this will hollow out our sovereignty. Once we surrender to this kind of demand, it becomes the new normal and the U.S. will know we can be forced to make agreements against our national interests.

We will have less freedom to chart our own course, less capacity to respond to crises, and less leverage in any future negotiation. 

This is the same “debt trap” the U.S. accused China of except now, they have perfected it for themselves.

Beyond putting us in debt, Malaysia's sovereignty is being directly and critically undermined. Look at how the U.S. uses tariffs to punish India for purchasing Russian oil and against Brazil to pressure it on domestic issues.

Trump has also not made any secret of his hatred for the BRICS grouping and has threated tariffs on countries that participate in BRICS. We are at risk of this as well. 

It is only reasonable for Malaysians to ask questions on the wisdom of the Madani government in accepting this unfavourable agreement. Was a detailed study done on alternatives?

Were any real efforts made to coordinate ASEAN as a group or BRICS to face the tariffs together instead of on a one-on-one basis with the U.S. which puts us at a severe disadvantage? 

The government has refused to make the details of tariff discussions available to the public. How can you commit to such a monumental deal that will cost Malaysians for decades to come without transparency?

So what’s the alternative? Caving in guarantees dependency. Taking them head-on may trigger retaliation, but it also sends a message that Malaysia is not for sale.

The smarter path may be exercising strategic patience that will outlast Trump and his tariff war until the U.S. political climate changes, while rapidly building trade ties with ASEAN, the European Union, the Middle East, Africa, and even China. A diversified export base makes us immune to single-market blackmail.

Remember that it is the U.S. that funds and supplies Israel's military which is currently engaged in a horrifying conflict against the people of Gaza. Why are we propping up the U.S after having spoken out so strongly against this genocide?

Are we hypocrites, cowards or simply yes-men for the U.S.? What will we do if we are asked to endorse U.S. demands to recognise Israel at the threat of tariffs? 

The Madani government has also proudly defended certain red lines it claims will never be compromised. But is all that worth it if paid for with such a massive financial commitment?

What dignity is there when we cannot afford to spend on development and are instead propping up the U.S. economy? We fight for rights but pay for privileges. Know the difference.

For too long, we have been told to fear Chinese influence while the U.S. influence gets a free pass. This is a wake-up call. Sovereignty is sovereignty, no matter who threatens it.

The real question now is whether Malaysia will bow to U.S. economic bullying or stand firm and defend its future.

*Tun Faisal Ismail Aziz is the Information Chief of the Malaysian United Indigenous Party (BERSATU) and an observer of geopolitical affairs.*