Anwar: Malaysia must handle US tariff issue cautiously to safeguard economy
KANGAR: Malaysia has adopted a moderate approach in addressing the United States' reciprocal tariffs announced by President Donald Trump earlier this month.
Prime Minister Datuk Seri Anwar Ibrahim said the issue must be handled cautiously to avoid serious repercussions for the country and its people's livelihoods.
"We are the second-largest semiconductor manufacturer in the world, with 60 per cent of our semiconductor exports going to the US.
"Therefore, our bilateral relationship with the US and other nations must remain balanced to prevent adverse effects on people's livelihoods and the country.
"We need to ensure our economy continues to grow, for the well-being of the people," Anwar said in his speech at the state-level Madani Aidilfitri celebration in Kuala Perlis.
Raja Perlis Tuanku Syed Sirajuddin Putra Jamalullail and Raja Perempuan of Perlis Tuanku Tengku Fauziah Tengku Abdul Rashid graced the event.
Also in attendance were the Raja Muda of Perlis Tuanku Syed Faizuddin Putra Jamalullail and Raja Puan Muda Perlis Tuanku Hajah Lailatul Shahreen Akashah Khalil.
Anwar stressed that no country, including the US, should be allowed to set tariffs on trade unilaterally, to the detriment of other nations' economies.
"As we were implementing domestic reforms, we were taken by surprise by the tariffs imposed by the President of the United States, Donald Trump, through tariff hikes.
"Tariffs mean that Malaysian goods exported to the US will become more expensive, which could pose a problem for Malaysia's economy.
"For now, the tariff increase has been postponed for 90 days, giving us some breathing space, as neighbouring countries like Thailand, Cambodia, Vietnam, and Indonesia are facing much higher tariffs," he said.
Anwar added that Malaysia would continue to negotiate with the US to address the issue, with two Cabinet ministers assigned to handle the talks.
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