Tariff Cuts Possible After Malaysia, US Begin Talks
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By Zufazlin Baharuddin
KUALA LUMPUR, April 25 (Bernama) -- Zero or reduced reciprocal tariffs for Malaysia could emerge as one of the key positive outcomes from the discussions by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz with the United States Trade Representative (USTR), Jamieson Greer, yesterday.
Economist Professor Dr Geoffrey Williams said the recent 90-day pause presents a window of opportunity for Malaysia to negotiate better trade terms, potentially boosting the country's global trade competitiveness.
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'The executive order signed by US President Donald Trump on Liberation Day explicitly allows for negotiations that could lead to the reduction or removal of the reciprocal tariffs, and this is what the US has been promising and promoting.
'If the outcome is successful and a commitment to reduce or remove both tariffs and non-tariff barriers is achieved, then the reciprocal tariffs can be lifted or reduced,' he told Bernama.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid also sees the possibility of securing an exemption or lower tariff following the talks, as Malaysia continues its diplomatic efforts on the matter.
'Given that the current reciprocal tariff is 24 per cent, while Malaysia's average tariff based on World Trade Organisation (WTO) data is 5.6 per cent, we might reach a compromise in between – or potentially receive exemptions,' he said.
He noted that Malaysia remains committed to fair bilateral trade with the US and is keen to see the trade balance between the two countries move towards a more favourable trajectory.
On April 2, 2025, the US President announced a series of reciprocal tariffs affecting multiple countries, including a 24 per cent tariff on Malaysian goods, which is currently on pause.
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