Tariff negotiations begin tomorrow, key goal is no tariffs on Malaysia

The Sun

05-05-2025

KUALA LUMPUR: Malaysia will begin reciprocal tariff negotiations with the United States (US) on Tuesday, with the main objective of ensuring that no tariffs are imposed on the country, especially in key sectors, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.
He said the negotiations will be held virtually, led by Deputy Secretary-General (Trade) Mastura Ahmad Mustafa as Malaysia's chief negotiator, alongside the Assistant US Trade Representative for Southeast Asia and the Pacific, Sarah Ellerman.
He noted that the initial discussions aim to determine the scope and technical issues that need to be addressed to reach a mutually beneficial outcome.
'In our discussions with the US administration, we stated that the objective is not merely to reduce tariffs, but we want to eliminate them altogether, if possible, with no tariffs imposed on our country.
'In the upcoming negotiations, we will uphold that goal. At the very least, we aim to reduce tariffs, but our main priority is to avoid them entirely, particularly in key sectors,' he said at a press conference after the special Dewan Rakyat sitting on the US tariff issue today.
On April 24, Tengku Zafrul led a high-level delegation to Washington for talks with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer.
The meeting emphasised the importance of continuous dialogue and Malaysia's readiness to find constructive solutions to issues raised by the US.
Tengku Zafrul noted that the US has outlined four main areas of concern: trade imbalance, non-tariff barriers (as highlighted in the National Trade Estimate Report), technology safeguarding, and investment-related issues.
'From their perspective, the trade imbalance — essentially a trade deficit — is viewed negatively. According to their data, the US recorded a US$25 billion trade deficit with Malaysia,' he said.
He added that the US also raised concerns over several non-tariff barriers, which they believe can be improved.
On technology safeguarding, Tengku Zafrul explained that the US wants to ensure its technologies are not accessed by unauthorised parties.
Regarding investment, he said the US is seeking more information on sectors where Malaysia invests and is encouraging support for industries aligned with US strategic interests.