THE Malaysian government has firmly rejected claims made by the United States that it has imposed a 47% tariff on American imports, while taking proactive measures to safeguard the interests of its people and businesses.
The MADANI government has expressed strong opposition to the recent reciprocal tariffs introduced by the US on April 3, 2025, arguing that such measures contravene the principles of free and fair trade outlined by the World Trade Organization (WTO).
The government reiterated that the 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, is a member.
The Ministry of Investment, Trade and Industry (MITI) said in a statement today that the economic impact of the latest US tariff measures 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 per cent – 5.5 per cent is currently under review,” it said.
The Malaysian government has acknowledged that the impact of the recent US tariffs will be significant, but it remains optimistic about the country's economic resilience.
Authorities are still waiting for more detailed information on the implementation of the tariffs, including specific rates, product coverage, and any potential exemptions.
MITI said the final economic outcome will also be influenced by retaliatory measures from other countries, which are expected to shape the global trade landscape.
"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 ministry stated.
At the ASEAN level, in Malaysia’s capacity as Chair of ASEAN for 2025, under the ASEAN Economic Community (AEC) Pillar, Minister of Investment, Trade and Industry Tengku Zafrul Tengku Abdul Aziz, will chair a Special ASEAN Economic Ministers’ Meeting on April 10, 2025.
The meeting is expected to discuss the broader implications of the US tariff measures on regional trade and investment flows; macroeconomic stability; and ASEAN’s coordinated response to uphold the region’s economic interests and long-standing commitment to an open, fair, and rules-based trading system.
Despite concerns over the escalating trade dispute with the United States, the government has expressed confidence that Malaysia will avoid a recession or a major economic downturn.
Economic growth projections remain under review but are supported by strong domestic fundamentals, including resilient household spending, robust investment, healthy tourism receipts, and ongoing implementation of key national development plans.
“Our sound economic fundamentals will enable us to weather this challenge from a position of strength and preparedness,” the government affirmed, emphasising the country’s capacity to withstand external shocks.
MITI also stressed that the MADANI government will continue to pursue an amicable and fair solution with the United States to resolve the ongoing tariff dispute. In a bid to preserve positive relations with all trading partners, the government intends to engage in constructive dialogue with US authorities in the hope of reaching a balanced resolution.
“During this trying period, the government will continue to prioritise Malaysia’s interests, for the well-being of our people, businesses and exporters,” MITI added, underlining the government's commitment to protecting its economy and the livelihoods of Malaysians during this uncertain time.
The government’s approach is centred around engaging strategically with the US while simultaneously working to diversify Malaysia's trade and investment interests across other markets.
The leadership remains hopeful that, with careful management, the country will successfully navigate through the challenges posed by the tariffs. – April 4, 2025
