Malaysia’s Minister of Trade, Tengku Zafrul, stated on Wednesday that Malaysia has no plans to implement retaliatory measures in response to the 25% equivalent tariff that the United States will start levying next month. He expressed optimism about reaching a trade agreement with the U.S.
Tengku Zafrul, speaking at a summit in Singapore organized by Reuters NEXT Asia, mentioned that Malaysia still has several weeks to negotiate the final terms of a trade agreement with the U.S. “I contacted the United States Trade Representative Office yesterday, and we both agreed to continue negotiations, so we still have time,” he said.
He added, “We are pleased to have the tariff implementation date extended to August 1, which gives me more time to refine some discussions.”
Malaysia, a major exporter of semiconductors and electronic products, will be subject to a revised 25% tariff imposed by the U.S., higher than the 24% rate announced by President Donald Trump in April before delaying the tariff for 90 days.
Tengku Zafrul stated, “We currently do not have plans to take retaliatory actions.”
On Wednesday, Malaysian Prime Minister Anwar Ibrahim indicated that he would raise certain tariff-related issues during his meeting with U.S. Secretary of State Marco Rubio.
The U.S. State Department noted that this visit by the top American diplomat to Asia showcases Washington’s commitment to the Indo-Pacific region.
Anwar Ibrahim told reporters, “Of course, any unilateral tariffs will have a negative impact on the economy of this country and region, but we are still negotiating.”
The Malaysian Ministry of Trade mentioned on Tuesday that they are continuing discussions with their U.S. counterparts to address pending issues, clarify the scope and impact of tariffs, and find ways to reach a timely agreement.
Tengku Zafrul remarked, “I am optimistic, especially in areas where I believe we can achieve mutual benefits.”
Malaysia and other Southeast Asian countries are severely affected by the equivalent tariffs imposed by the U.S. as these countries rely on exports and manufacturing to drive economies valued at over $3.8 trillion, with some benefiting from trade redirected from China.