Putrajaya says no retaliatory tariffs against US, seeking dialogue

Summary

• The government will engage US authorities to seek solutions following its announcement on increased tariffs on Malaysian goods, adding that it will not respond with retaliatory measures.

• According to the Investment, Trade and Industry Ministry, the government will also evaluate the impact of the new rate and consider strategies to mitigate its impact on Malaysia.

• The government is also engaging affected industries and exploring support programmes to help businesses.

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Malaysia is not considering retaliatory tariffs against the US for increasing its import duties on Malaysian goods, said the Investment, Trade and Industry Ministry.

Instead, the ministry said they will continue to engage the US authorities to seek solutions "that will uphold the spirit of free and fair trade".

"We acknowledge that US President (Donald) 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.

"And we are committed to safeguarding Malaysia's economic interests and maintaining strong trade relations with the US," the ministry said in a statement, which was released just before afternoon.

It came in response to Trump's announcement earlier today, where he revealed higher tariffs for dozens of countries in a move to address the republic's trade deficit.

The move saw the US slapping reciprocal tariffs of 24 percent on Malaysia.

Mitigating tariff impact

According to the ministry, the government's National Geoeconomic Command Centre (NGCC) will evaluate the impact of the new tariffs and consider strategies to mitigate their impact on Malaysia's economy and industries.

It said the government is engaging with the affected industries while exploring support programmes to help businesses adapt.

Malaysia also plans to expand its export markets and leverage on existing trade agreements to mitigate the tariff hike.

"To mitigate tariff impact, Malaysia is expanding our export markets by prioritising high-growth regions and leveraging existing Free Trade Agreements including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership.

"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 and the National Energy Transition Roadmap."

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