MALAYSIA is not considering any retaliatory tariffs against the recent 10% tariff hikes and reciprocal tariff announced by US President Donald Trump on Malaysian exports to the US.
The Investment, Trade and Industry Ministry (Miti) said it views these tariffs seriously and is "actively engaging" with the US authorities to seek solutions that will uphold the spirit of free and fair trade.
The ministry nonetheless expressed confidence that the economy would remain resilient, with domestic demand as the main driver of economic growth.
"To mitigate the tariff impact, the nation will expand its 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 utilise the Trade and Investment Framework Agreement to seek reciprocal trade gains and pursue a Technology Safeguards Agreement with the US to facilitate high-tech cooperation in semiconductors, aerospace, and digital economy sectors,” the ministry said in a statement.
Miti said the National Geoeconomic Command Centre (NGCC), recently approved by the Cabinet, will evaluate the impact of this recent US announcement and will consider a comprehensive and multipronged strategy to mitigate the effects of these tariffs on the economy and industries.
“The government is engaging the affected industries while exploring support programmes to help businesses adapt,” it said.
The ministry said the NGCC would be chaired by Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, with Miti as its secretariat.
It added that NGCC’s key focus is to ensure that the Malaysian economy remains competitive amid these volatile times.
Miti said new partnerships would also be forged within Asean while key industrial policies like the New Industrial Master Plan and National Energy Transition Roadmap would be expedited to enhance the resilience of the Malaysian supply chain.
“Miti remains committed to open dialogue and collaboration to resolve trade disputes and promote mutual prosperity,” it added. – April 3, 2025
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