Putrajaya refutes 47pct tariffs on US goods, to prioritise national interests

Putrajaya has refuted the claim by US authorities that Malaysia has imposed a 47 percent tariff on US imports into Malaysia.

The government also emphasised that reciprocal tariffs do not serve the principles of free and fair trade stipulated under the World Trade Organisation, of which 164 countries, including the US, are members.

The Investment, Trade and Industry Ministry said in a statement that the economic impact of the latest US tariffs is still being assessed.

“While our earlier projections were based on a cautious outlook, the scope and severity of the tariffs have exceeded even our most conservative assumptions. As such, the 2025 gross domestic product (GDP) growth forecast of 4.5-5.5 percent is currently under review,” it said.

The precise impact is expected to be significant and will be clearer once more information is received on the implementation timeline, tariff rates, product coverage (including exemptions), and the outcome of trade negotiations.

The speed and scale of retaliatory actions by other economies will also influence the final outcome.

However, the Madani government does not foresee a recession or a fundamental slowdown.

Economic growth projection remains forthcoming, underpinned by resilient household spending, strong domestic investment, healthy tourism receipts, and the continued implementation of national master plans.

“Our sound economic fundamentals will enable us to weather this challenge from a position of strength and preparedness.”

The ministry said that in the spirit of maintaining positive and progressive relations with all trading partners, the Madani government will continue to engage with the US to find an amicable and fair solution to the reciprocal tariff issue.

“During this trying period, the government will continue to prioritise Malaysia’s interests, for the well-being of our people, businesses, and exporters,” it added.

In a meeting today, the ministry said the government discussed various key measures to weather the tariff storm, including strengthening Malaysia’s supply chain, as well as diversifying its trade and investment interests.

Strategic high-level engagement with the US will continue, leveraging on the Malaysia-US Trade and Investment Framework Agreement.

The ministry and other relevant ministries will continue to engage with the industry and exporters to weather this testing period based on a whole-of-nation approach, and with a view to supporting impacted industry sectors to mitigate the impact of the tariffs.

- Bernama

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