Miti rules out retaliatory tariffs after US hike on Malaysian exports, PM-led team to assess response
The Ministry of Investment, Trade and Industry (Miti) said it takes the US’s tariff hike on Malaysian exports seriously and is engaging with US authorities to find solutions that uphold free and fair trade. — Picture by Yusof Mat Isa
Thursday, 03 Apr 2025 12:18 PM MYT
KUALA LUMPUR, April 3 — The Ministry of Investment, Trade and Industry (Miti) views the 10 per cent tariffs hikes and reciprocal tariffs announced by the United States of America (US) on Malaysian exports to the US seriously and is actively engaging with the US authorities to seek solutions that will uphold the spirit of free and fair trade.
In a statement today, Miti said the US tariffs affect many countries with potentially significant implications for global trade and growth.
The National Geoeconomic Command Centre (NGCC), recently approved by the Cabinet, will evaluate the impact of this recent US announcement and will consider a comprehensive and multi-pronged strategy to mitigate the effects of these tariffs on our economy and industries.
The NGCC, to be chaired by the Prime Minister with Miti as the Secretariat, features high-level representatives from key ministries and agencies.
The NGCC’s key focus is to ensure that the Malaysian economy remains competitive amidst these volatile times.
Asean Geoeconomic Task Force to commence soon
At the Asean level, the first meeting of the Asean Geoeconomic Task Force — established at the Asean Economic Ministers’ Retreat in February 2025 — will also commence soon.
Miti said Malaysia will utilise the Trade and Investment Framework Agreement (Tifa) to seek reciprocal trade gains and pursue a Technology Safeguards Agreement with the US to facilitate high-tech (technology) cooperation in semiconductors, aerospace, and digital economy sectors.
According to the US Bureau of Economic Analysis, Malaysia ranks 15th on the US list with a trade surplus of US$24.8 billion (RM110.68 billion) in 2024.
“Despite the trade deficit in goods, the US enjoys a trade surplus in services with Malaysia, reflecting strong bilateral economic ties that support jobs and economic growth for both nations.
“It must be highlighted that the trade deficit with the US is also due to many US firms that have been operating in Malaysia for decades, on account of Malaysia’s well-established industrial ecosystem, especially in the electrical and electronics (E&E) sector,” said Miti.
The ministry said that President Trump's tariff hike poses a significant challenge to global trade dynamics.
“While respecting such sovereign decisions, Malaysia strongly believes in constructive engagement for mutually beneficial economic relations,” it said.
Miti committed to safeguarding Malaysia’s economic interests
Miti said it is committed to safeguarding Malaysia's economic interests and maintaining strong trade relations with the US.
“To mitigate tariff impact, Malaysia is expanding our export markets by prioritising high-growth regions and leveraging existing free trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).
“Malaysia will also foster new partnerships within Asean and enhance Malaysia’s supply chain resilience by accelerating the implementation of key industrial policies like the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR),” it said.
Miti said the government is engaging with the affected industries while exploring support programmes to help businesses adapt.
“Miti remains committed to open dialogue and collaboration to resolve trade disputes and promote mutual prosperity. Malaysia is facing this challenge from a position of strength and preparedness.
“The fundamentals of our economy remain robust. In the immediate future, while the external environment may be challenging, our diversified markets and products, along with strong demand for our produce, will provide us with some buffers,” said the ministry.
Furthermore, domestic demand, the country’s main growth driver, remains robust, and Miti believes the Malaysian economy will continue to be resilient amidst these challenges, it said. — Bernama
Anwar used to have excellent links with the US foreign policy establishment , which in a more conventional US Republican or Democrat establishment ought to smooth the way for a deal or minimise the damage
ReplyDeleteBut Donald Fuck MAGA doesn't give a fuck. Its all about what's in it for Fuck 's sake.
When your tariffs are higher than 500yo Bullyland's it will be futile to engage in a trade war because Bullyland will always have more ammunition. In 2024 Bullyland had $1.2 trillion trade deficit. That's a lot of ammo. They will sure win.
ReplyDeleteIt's like IDF have tonnes of bombs, but Hamas only has pop guns, but refuse to surrender, shoots lastik then gets obliterated. Sure cannot win. Or when Giant Ruski invades Ukraine, surrender-lah, but they retaliate by sending a couple of drones into Kursk, then Bloodymir Pootin returns fire with khinzir missiles. Wipeout.
The largest trade deficits held by the Bullyland in 2024 were with China (-$295 billion), EU (-$240 billion), Mexico (-$172 billion), Vietnam (-$123 billion), Ireland (-$87 billion), and Germany (-$85 billion).
Wakakakaka…
ReplyDeleteIn 6 months time the real effects on USofA's populace & economy will be telling!
Perhaps a color revolution in yankeeland to force the resignation of POTUS. That would be a first in yankee history.
Malaysia must not retaliate. Satu kali Bullyland revoke all student visas and green cards then how? But good thing the CEOs of Broadcom and Intel are already US citizens, otherwise they too kena pecat.
ReplyDeleteIf the yank needs u, they will pecat their veil of fart to acquire needy technical personnel.
Delete