THE United States' basis for calculating the 24 per cent tariff on Malaysian imports is "fundamentally flawed", Prime Minister Datuk Seri Anwar Ibrahim said today.
He assured that Malaysia will not slip into a recession for now following the imposition of tariffs, as the country’s economy remains resilient.
Anwar also refuted the US claim that Malaysia imposed a 47 per cent tariff on US imports.
"However, the economic growth forecast of 4.5% to 5.5% for this year would need to be reviewed.
“For now, let me reassure you that the government does not foresee a recession in Malaysia,” he said in a video broadcast on the US tariff.
He said Malaysia’s positive macroeconomic fundamentals were well supported by its robust household spending, strong domestic investment, healthy tourism receipts and the continued implementation of national masterplans.
Anwar said the government viewed the tariffs as a rejection of the principles of free, non-discriminatory, predictable and open trade under the World Trade Organisation.
While some exemptions partially shielded semiconductors, Malaysia’s largest exports to the US, the new tariffs would still adversely impact many industries including textiles, furniture, rubber and plastics.
"This very organisation was established by, among others, the US itself in 1948 through the General Agreement on Tariffs & Trade.
"As an open trading nation, Malaysia deems the unilateral decision on reciprocal tariffs as a major threat to the current global trade and investment system," he said.
The Prime Minister said the government understands the concerns, anxieties and difficulties faced by the workers, manufacturers and businesses in these sectors.”
“We affirm our determination to overcome and adapt to this challenge.
“The government has taken several initial steps to address the impact of tariffs, including the establishment of the National Geo-economic Command Centre (NGCC), which I chair," he stressed. – April 6, 2025
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