PETALING JAYA: Malaysia is not looking at retaliatory tariffs against the United States after it was hit with a 10% tariff hike and reciprocal tariff by President Donald Trump’s administration, says the Investment, Trade and Industry Ministry (Miti).

In an immediate reaction to the announcement on Thursday (April 3) Malaysian time, the ministry said it views the tariffs seriously and is actively engaging with US authorities to seek solutions that will uphold the spirit of free and fair trade.

“In upholding this spirit, Malaysia is not considering retaliatory tariffs,” it said in a statement.

“The US tariffs affect many countries with potentially significant implications for global trade and growth.”



Citing data from the US Bureau of Economic Analysis, Miti said Malaysia ranks 15th on the US list with a trade surplus of US$24.8bil (RM110.79bil) last year.

“Despite the trade deficit in goods, the United States enjoys a trade surplus in services with Malaysia, reflecting strong bilateral economic ties that support jobs and economic growth for both nations.



"It must be highlighted that the trade deficit is also because many US firms have been operating in Malaysia for decades, on account of Malaysia’s well-established industrial ecosystem, especially in the electrical and electronic sector.

"We acknowledge that President Trump's tariff hike poses a significant challenge to global trade dynamics," it said.

Miti said Malaysia strongly believes in constructive engagement for mutually beneficial economic relations, and is committed to safeguarding Malaysia's economic interests while maintaining strong trade relations with the United States.



Malaysia would also utilise the Trade and Investment Framework Agreement (Tifa) to seek reciprocal trade gains and pursue a Technology Safeguards Agreement with the United States to facilitate high-tech cooperation in semiconductors, aerospace, and digital economy sectors, it added.

The National Geoeconomic Command Centre (NGCC), which was recently given the green light by the Cabinet, will also evaluate the impact of the tariffs and look into a comprehensive and multi-pronged strategy to mitigate its effects on the Malaysian economy and industries, it said.

The NGCC will be chaired by the Prime Minister with Miti as the secretariat and features high-level representatives from key ministries and agencies.

“The NGCC’s key focus is to ensure the Malaysian economy remains competitive amidst these volatile times.

"At the regional level, the first meeting of the Asean Geoeconomic Task Force – established at the Asean Economic Ministers’ Retreat in February – will also commence soon,” it said.


The ministry also said that to mitigate tariff impact, Malaysia will expand its export markets by prioritising high-growth regions and leveraging existing free trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP).

It will also foster new partnerships within Asean and enhance Malaysia’s supply chain resilience by accelerating the implementation of key industrial policies like the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR), it said.

“The government is engaging with the affected industries, while exploring support programmes to help businesses adapt. Miti remains committed to open dialogue and collaboration to resolve trade disputes and promote mutual prosperity,” it added.


According to the ministry, Malaysia's diversified markets and products, coupled with strong demand, would provide the country with a buffer for the immediate future.

"Furthermore, domestic demand, which is our main driver of growth, remains robust,” it added.

The ministry said the Malaysian economy would remain resilient amid these challenges.

The 24% tariff on goods entering the United States will begin on April 9, as Trump announced new import duties on his country's trading partners.

This post has been edited by premier239: Apr 3 2025, 02:08 PM

cheap mustangs incoming

Telur mahal bang....

settled our 5000cc roadtax price first. Then we can get cheap mustang

owai

All things considered, personally I think this is best course of action. We cannot change Trump and how he views trade deficit as tariff. So any actions we take might just end up backfiring because the root cause of trade surplus is our ringgit is weak which gives us the production cost advantage. To buy more from USA means ringgit weakens more and it will never solve the trade surplus issue. Might as well just see if any form of deals can be made before we take any actions.

ok lar... this is a better response than just tik for tat
we don't have that much power to fight USA unless really doesn't want to trade with US anymore

Murica: that's right. just accept it unless u want to use hyperos to do banking.

Just read the full executive order.

Its 10% tariff on all goods going into murica from 5 April. This applies to everyone.

Then additional 24% tariff on bolehland goods going to murica from 9 April.

So total extra 34% customs duties.

The 24% can be removed by Trump, if he suka. However, there won't be much time as everyone in the world will want to talk to Trump.

lol @ miti.

Good la .. we only kancil cannot fight gajah .. let other gajah fight gajah …
Kancil should be smart though

no negola Miti

all good friends of USA also have calls with trump and try to nego but still kena.

Scott Bessent Urges US Trading Partners Not to Retaliate: Full Interview

https://www.youtube.com/watch?v=yO0GFiJ5ADc

that day PMX wanted to call trump right, he macam ddint even want to accept kek

Mana formula king madona? kek

as long as our competitor's tariff is higher then us....

All apple product + 30% tariff

but what cards you have first?

PPE is under Pharmaceutical category or not?

it's fine. most asian supply routes are heavily tariff-ed.

EU FTA needs to resolved and start immediately, can reroute through Rotterdam.

we dont import much from them :X how to retaliate? LOL

What is Plan B?