PUTRAJAYA may reassess its Reciprocal Trade Agreement with the United States following a landmark ruling by the Supreme Court of the United States that struck down President Donald Trump’s sweeping global tariffs.
The top court’s decision on Friday invalidated tariffs imposed under the 1977 International Emergency Economic Powers Act, declaring that the president’s use of emergency powers to levy reciprocal duties on nearly all US trading partners was unconstitutional.
The judgment, set out in a 170-page opinion, upheld lower court rulings and found that Trump had exceeded his presidential authority by invoking the statute to impose broad global tariffs, including fentanyl-related duties on imports from China, Canada and Mexico.
In light of the ruling, Malaysian officials indicated that Putrajaya may need to re-evaluate the Malaysia–US Reciprocal Trade Agreement signed on Oct 26, 2025, including from a legal standpoint.
A review could involve obtaining legal advice, particularly on how Malaysia should respond if the court’s decision results in adverse consequences for the country or alters the framework underpinning the agreement.
Since signing the pact, Malaysia has repeatedly stressed that its sovereignty, policy autonomy and national interests remain fully safeguarded under the Malaysia–US Reciprocal Trade Agreement.
The deal was concluded after negotiations that began in April 2025 on the sidelines of the 47th ASEAN Summit and related meetings. It was intended to stabilise trade relations between Kuala Lumpur and Washington following the introduction of higher US tariffs on countries running significant trade surpluses.
Under the agreement, 1,711 categories of Malaysian export products are eligible for tariff exemptions when entering the US market, a provision designed to enhance price competitiveness and reinforce Malaysia’s role in global supply chains.
The pact also sought to protect Malaysian exports and jobs by guaranteeing continued access to the US market and promoting reciprocal treatment, ensuring both sides apply balanced tariffs, market access conditions and trade regulations.
The Supreme Court’s ruling now raises questions for countries that negotiated trade arrangements with Washington on the basis of tariffs that have since been nullified.
Analysts suggest that governments may reassess whether such agreements require revision in light of the altered legal landscape in the United States.
Malaysia has not indicated that it intends to withdraw from the agreement, but officials acknowledge that developments in Washington may necessitate careful legal and policy consideration to ensure national interests remain protected. - February 21, 2026
