THE potential threat of a 100% tariff made by U.S. President Donald Trump, should it be enacted, is technically not directed at Malaysia at this time, Deputy Investment, Trade and Industry (MITI) Minister Liew Chin Tong said in the Dewan Negara today.
He explained that, as of January 2025, Malaysia is not yet a full member of the BRICS bloc (Brazil, Russia, India, China, South Africa). Instead, Malaysia, along with eight other countries including Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Thailand, Uganda, and Uzbekistan, holds the status of "BRICS Partner Country."
The deputy minister reiterated that while Malaysia is not a member of BRICS, the country could potentially remain unaffected by any tariff imposition targeting BRICS nations if the tariffs are applied specifically to member states.
Liew highlighted that in 2024, the U.S. dollar still dominated Malaysia’s trade, accounting for 81.72% of the country’s transactions, while the Chinese Renminbi (RMB) accounted for just 3.51%.
“This reflects the significant role the US dollar continues to play in the global financial system, despite the growing prominence of other currencies like the Renminbi,” he said.
Liew said as long as the US dollar remains central in international trade, Malaysia's economic relations would likely be influenced by any changes in the US dollar’s standing, but any direct impact from a potential tariff imposition on BRICS countries would be unlikely at present.
The deputy minister said this in response to a question from Senator Tan Sri Dato' Low Kian Chuan on Trump’s threat to impose a 100% tariff on BRICS countries should they move away from the US dollar.
Liew added, while Malaysia’s partnership status with BRICS does not subject the country to Trump’s threat of tariffs, he acknowledged that the global financial landscape remains heavily influenced by the US dollar.
Malaysia’s economy continues to be closely tied to the US currency, with the government monitoring potential shifts that could affect the nation’s trade and financial stability. – March 13, 2025
