Govt must negotiate new tariffs with US, says Wan Fayhsal

Summary

• Bersatu’s Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal urges the government to engage with the US to lower or restructure its 24pct tariffs on Malaysian imported goods.

• He says the tariffs can seriously affect main Malaysian exports such as electronics, furniture and timber-based products, and textiles.

• Wan Fayhsal adds that Malaysia should expand its exports in other regions such as West Asia and Africa.

Bersatu MP Wan Ahmad Fayhsal Wan Ahmad Kamal has urged Putrajaya to seek the US to lower its 24 percent reciprocal tariffs on all Malaysian imported goods.

This followed US President Donald Trump’s announcement of higher tariffs for dozens of countries in a move to address the republic’s trade deficit earlier today.

In a statement, Machang MP Wan Fayhsal said the government should be quick to negotiate with the US to reduce or restructure tariffs.

“Such high tariffs imposed (on Malaysia) would have serious impacts on several of its main exports, including the electrical and electronics products, furniture and timber-based items, and the textiles industry.

“The direct impact from these increased tariffs includes reducing the competitiveness of Malaysian products in the US, loss of export contracts, downsizing of industrial operations, and increasing risk of local unemployment.

“In the medium term, this would also affect the country’s gross domestic product and weaken the value of our ringgit continuously as what is happening now,” he said.

In his statement, Wan Fayhsal suggested that the government expand Malaysian exports to other countries in West Asia and Africa, among others, and to further strengthen Petronas’ role as the country’s geoeconomic backbone.

Trump made the new tariffs announcement from the White House this morning (4am Malaysia time), in an event dubbed “Liberation Day”.

According to a chart that Trump held up during the event, Malaysia was 11th on the list - just after Switzerland and Indonesia.

It indicated that Malaysia had been imposing 47 percent tariffs on US products and set its reciprocal tariffs at 24 percent, slightly above half of the rate.

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