Malaysia will not retaliate against US tariff as talks continue
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Trade Minister Tengku Zafrul Aziz said Malaysia still has a few more weeks to negotiate the final terms of an agreement.
PHOTO: REUTERS
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KUALA LUMPUR - Malaysia has no plans to retaliate against a 25 per cent tariff levied on its exports to the US by Washington, Trade Minister Tengku Zafrul Aziz said on July 9, adding that he was “still optimistic” about reaching a trade deal.
Speaking in an interview at the Reuters Next Asia summit in Singapore, Datuk Seri Tengku Zafrul said Malaysia still had a few more weeks to negotiate the final terms of an agreement.
“I’m in touch with (the) USTR (US Trade Representative) as recently as yesterday, and we all agreed that we could continue our negotiations, so we still have time,” he said.
“We are appreciative that the timeline has been extended to first of August,” he added. “It gives me a bit more time to refine some of the discussion.”
Malaysia, a key exporter of semiconductors and electronics, was slapped with a revised 25 per cent tariff on its exports to the US,
“We have no plans to retaliate for now,” Mr Tengku Zafrul said.
Malaysian Prime Minister Anwar Ibrahim said on July 9 that he will raise some of the tariff-related issues during his meeting with US Secretary of State Marco Rubio, who is in Malaysia this week for Asean-related meetings.
The State Department billed the trip as a first visit to Asia by America’s top diplomat and a demonstration of Washington’s commitment to the Indo-Pacific.
“Any unilateral tariffs will, of course, impact negatively on the economy of this country and this region. But we are still in the midst of negotiations,” Datuk Seri Anwar told reporters.
Malaysia’s trade ministry said on July 8 that it was continuing discussions with US counterparts to address pending issues, clarify the scope and impact of the tariff, and pursue avenues for a timely conclusion to the talks.
“I am optimistic, especially in sectors that I feel there is a win-win,” Mr Tengku Zafrul said.
Malaysia and other countries in South-east Asia are among the hardest hit by Mr Trump’s sweeping tariffs, as they rely on exports and manufacturing to drive economies collectively worth more than US$3.8 trillion (S$4.9 trillion), some helped by supply chain shifts from China. REUTERS
