KUALA LUMPUR – Malaysia will use the 90-day delay on US tariff implementation to negotiate a reduction from 24% and to widen the range of exempted exports, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.
He said the deferral period would be used to the fullest extent for negotiations with the US.
“Our objective is to reduce the tariff and widen the range of exempted Malaysian exports to mitigate the negative impact on the country’s economy.
“The US is one of Malaysia’s most important trading partners, but Malaysia has a diversified trade portfolio that is not overly reliant on just one or two markets,” he said at a press conference yesterday regarding US tariffs here.
Tengku Zafrul said total trade with the US in 2024 accounted for 11.3% of Malaysia’s total trade.
“This means we still have about 88% of the market open for us to expand our trade.
“But we must also understand that the world’s supply chains are very interconnected, where a shortage in one market may result in a domino effect or a direct impact on the supply chain involving Malaysia’s economic relations with other countries,” he said.
He said Malaysia still values the American market and will strive to continue discussions to find the best solution for Malaysia-US economic relations.
“For the first priority (engage), we will focus on the engagement sessions with the US government at every level in the near future, and currently, we are still waiting for an appointment date from the US Trade Representative (USTR).
“(As for second priority, to diversify), we will intensify proactive discussions with other economic blocs, countries and markets to expand the market,” he added.
Reaffirming Malaysia’s stance on the US tariff, he reiterated that Malaysia will not retaliate with tariffs, instead, it will focus on reducing tariff rates and expanding the list of exemptions for Malaysian exports.
Tengku Zafrul said the government has taken several measures, including negotiations with US counterparts and consultations with key industries, such as semiconductors and high-value manufacturing, many of which are backed by major American firms.
“Meetings have already been held with top US companies like Intel and Oracle, which have reaffirmed their commitment to Malaysia despite the new tariff landscape.
“Many of these firms are working with us to highlight how integrated supply chains involving Malaysia benefit both sides,” he said.
At the same time, Malaysia will also engage China, Tengku Zafrul added
This is a “dual-track strategy” of engaging bilaterally and multilaterally with major trading partners, while maintaining an open posture to both Washington and Beijing, he explained.
“We are open to increased collaboration on trade and investment with China and Asean,” he said.
Discussions with senior Chinese officials had already taken place, including virtual meetings with China’s National People’s Congress.
Chinese president Xi Jinping is also scheduled to arrive in Malaysia today for a three-day official visit. – April 15, 2025