Malaysia is carefully assessing recent legal and policy changes in the US, the Ministry of Investment, Trade and Industry said, following the US Supreme Court’s move in striking down President Donald Trump’s sweeping import tariffs.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani noted that while Malaysia had signed a reciprocal trade agreement with the US last year, it has yet to ratify it.
“Nevertheless, based on statements previously released by the US, we recognise that the US retains other legal mechanisms to impose trade measures, including unilateral tariffs, should it choose to do so.
“We also note the recent announcement by President Trump of a temporary 10% tariff measure, and we are studying its scope and implications. At this stage, we are awaiting further clarity on how these measures will be implemented and whether additional adjustments will follow,” Johari said in a press statement on Saturday.
The minister said the US remains one of the world’s largest economies and a key trading partner for Malaysia. Total trade between the two countries reached RM367 billion last year, with exports to the US at RM233 billion. The US is, therefore, an important and longstanding trading partner for Malaysia, he noted.
“Malaysia’s position is clear and consistent. We will remain committed to an open and rules-based trade, to maintain a stable and predictable business environment, and to safeguard the interests of Malaysian exporters, international investors, businesses operating in Malaysia, and workers across our economy.
“At the same time, Malaysia will continue to diversify its trade relationships and strengthen regional and multilateral economic cooperation to ensure resilience in an evolving global trade environment.
“We will act in Malaysia’s best interests while preserving strong bilateral relations with the US,” Johari said.
On Feb 20, the US’ top court, in a 6-3 ruling authored by conservative Chief Justice John Roberts, upheld a lower court's decision that Trump's use of a 1977 law — known as the International Emergency Economic Powers Act (IEEPA) — exceeded his authority.
The justices ruled that the IEEPA did not grant Trump the power he claimed to impose tariffs.
The US president later responded that he would impose a uniform tariff of 10% on all imports under a separate authority.
“In order to protect our country, a president can actually charge more tariffs than I was charging in the past,” Trump was reported as saying, insisting that the ruling left him “more powerful”.
Malaysia and the US inked the reciprocal trade agreement when Trump visited Kuala Lumpur last October for the Asean summit. The deal had maintained tariffs at 19%, with certain identified products allowed zero tariffs under aligned partner-trade lists.
Source: theedgemalaysia