Malaysia must keep engaging US on tariffs, says Miti

KUALA LUMPUR, June 23 — Malaysia will continue negotiating with the United States on reciprocal tariffs and other trade measures affecting the interests of both countries, Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani reportedly said today.

According to Berita Harian, Johari told the Dewan Rakyat that halting engagement with the US could expose Malaysia to risks and affect the country’s economy and trade.

“Without engagement, we face the risk of the US treating the tariff as unilateral. What unilateral means is that when we export goods, we provide the price to the importer in the US. When the goods arrive in the US, they will add another 19 per cent to impose on their own people, not on us,” he was quoted as saying.

Johari said the additional tariff could make Malaysian products less competitive in the US — a key export market particularly for the E&E and semiconductor sectors.

Malaysia recorded RM1.6 trillion in exports, of which RM711 billion came from the E&E and semiconductor sectors, while exports to the US alone totalled RM233 billion last year, he added.

The minister also said the 10 per cent tariff under Section 122 of the US Trade Act 1974 was valid for only 150 days and was scheduled to expire on July 24.

In April, Johari reportedly said Malaysia was facing several US trade actions under various American legal provisions.