Malaysia To Protect National Interests, Sovereignty During US Tariff Talks - Tengku Zafrul

KUALA LUMPUR, July 9 (Bernama) -- Malaysia will continue its firm stance in crucial matters related to national interest and sovereignty in its ongoing negotiations with the United States (US) on tariffs.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz emphasised that there were specific red lines that Malaysia would not compromise on during the negotiations.

“The goal has remained clear to secure our export market access, modernise our economy and safeguard Malaysian livelihoods for the long term,” he told a press conference here today to explain Malaysia’s stand and its next course of action in relation to the recent US announcement on tariffs.

Tengku Zafrul also said the Malaysian negotiation team had to achieve a high level of consensus on issues such as economic security, purchase of US-made products and increasing investments in the US to help balance Malaysia-US trade.

“But i would like to highlight that the US trade deficit with Malaysia has been on a declining trend for the past six years since 2019,” he added.

Elaborating on the red lines, he explained that digital tax, halal certification and government procurement are among the issues brought up during the negotiations.

In terms of specific sectors, Tengku Zafrul said negotiations for industrial products cut across sectors like machinery and equipment, chemical and chemical-based products, medical devices, iron and steel, aluminium, plastic, automotive as well as electrical and electronics (E&E). 

“As for agricultural products, negotiations centred on fruits, grains and rice, live poultry and eggs, meats, meat and dairy products and alcohol. And there's also alleged non-tariff barriers,” he said. 

On Monday, Washington announced that it is imposing a 25 per cent tariff on any and all Malaysian products sent into the country, separate from all sectoral tariffs, effective Aug 1 this year, one per cent higher compared to what had been announced in April.

Trump said there would be no tariff if Malaysia, or Malaysian companies, decide to build or manufacture products within the US.

Since April, Malaysia has been negotiating the US tariff with Washington, aiming to lessen the 24 per cent tariff imposed earlier, with the latest talks held on June 18 this year.

-- BERNAMA