Kuala lumpur: 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.
According to BERNAMA News Agency, Tengku Zafrul articulated the goal to secure Malaysia’s export market access, modernise the economy, and safeguard Malaysian livelihoods for the long term. He addressed a press conference to explain Malaysia’s stand and its next steps regarding the recent US announcement on tariffs.
Tengku Zafrul highlighted the necessity for the Malaysian negotiation team to achieve a high level of consensus on issues such as economic security, the purchase of US-made products, and increasing investments in the US to help balance Malaysia-US trade. He noted that the US trade deficit with Malaysia has been on a declining trend since 2019.
Elaborating on the red lines, Tengku Zafrul explained that digital tax, halal certification, and government procurement are among the issues brought up during the negotiations. He noted that negotiations for industrial products span sectors like machinery and equipment, chemical and chemical-based products, medical devices, iron and steel, aluminium, plastic, automotive, as well as electrical and electronics.
In terms of agricultural products, discussions centred on fruits, grains and rice, live poultry and eggs, meats, meat and dairy products, and alcohol. There are also alleged non-tariff barriers that have been addressed during these talks.
On Monday, Washington announced the imposition of a 25 per cent tariff on all Malaysian products entering the US, separate from sectoral tariffs, effective August 1 this year. This is one per cent higher than the tariff announced in April. The US proposed that there would be no tariff if Malaysia or Malaysian companies choose to build or manufacture products within the US.
Since April, Malaysia has been in negotiations with Washington to lessen the previously imposed 24 per cent tariff, with the latest talks held on June 18 this year.