Putrajaya to press on with US tariff negotiations

The Sun

10-07-2025

KUALA LUMPUR: Malaysia remains hopeful of reaching a fair resolution with the United States before the planned 25% import tariff takes effect on Aug 1, with several engagements held over the past 90 days to address the issue.
Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said discussions with US officials are ongoing, with Malaysia continuing high-level dialogue to safeguard its trade and economic interests.
'We remain optimistic and will continue engaging the US to ensure our concerns are heard and addressed.
'It's important to note that the tariff has not yet taken effect, and we are using this window to find a balanced resolution,' he told a press conference yesterday.
Since the US first announced the tariff, Malaysia has conducted over 25 engagements with its American counterparts over the past three months.
The latest rate, revised from 24% in April to 25%, is set to be imposed on all Malaysian imports starting next month.
Tengku Zafrul reaffirmed Malaysia's commitment to constructive dialogue, but stressed that national interests would not take a back seat.
'Malaysia takes note of the unilateral decision and will continue our constructive dialogue on bilateral trade with the US.
'Over the 90-day pause, MITI and I engaged with US counterparts multiple times.
'We negotiated in good faith with a give-and-take approach but stood firm on matters of national interest and sovereignty. There were specific red lines that we would not compromise on.'
The 'red lines' include Malaysia's right to impose a digital tax, its procurement policies and national standards involving public health, agriculture and halal certification.
'Negotiations are not just about economic give-and-take.
'Some issues touch on sovereignty and public interest. We cannot compromise on those.'
Malaysia's approach, Tengku Zafrul said, was guided by pragmatism and long-term national priorities.
'Negotiating is about balance. For every commitment, we asked whether it would be worth opening certain markets if it meant preserving critical national policies.'
He said Malaysia's offers had addressed nearly all of US requests on market access for both industrial and agricultural products.
They include sectors such as machinery and equipment, chemicals, medical devices, electronics and electrical (E&E), aluminium, plastics, automotive, fruits, grains, dairy, meat and alcohol.
The talks also involved cross-ministerial coordination, including Health, Agriculture and Communications, to align positions on food safety, labour standards, digital trade and environmental protection.
On digital trade, Tengku Zafrul said Malaysia remains committed to enabling secure cross-border data flows while safeguarding its regulatory sovereignty.
'Our approach is based on non-discrimination, while defending our sovereign right to regulate in the interest of the public and for national security,' he said, adding that this aligns with World Trade Organisation principles and Malaysia's existing free trade agreements.
Tengku Zafrul also confirmed that Malaysia Airlines' pledge to purchase 30 Boeing aircraft, with the option of 30 more, as well as semiconductor and technology investments, form part of a broader trade-balancing strategy with the US.
'We will continue negotiating, but we must also be ready to say no when something crosses the line,' he said adding that Malaysia's priorities have remain unchanged.
'Our goal is to secure our export market access, modernise our economy and protect Malaysian livelihoods in the long term.'
On Monday, US President Donald Trump announced the 25% tariff in a letter to Prime Minister Datuk Seri Anwar Ibrahim, posted on his Truth Social platform.