Kuala Lumpur: Malaysia still has room to negotiate with the United States (US) regarding Washington’s imposition of a 24 percent reciprocal tariff on Malaysian goods, said Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour. He noted that the central bank is awaiting further details from the US about the tariffs.

According to BERNAMA News Agency, the full impact of the tariffs on inflation can only be assessed once the negotiation process is completed and the details are finalized. “There is still room for negotiation, and we do not yet know the full extent, timing, or magnitude of the tariff, nor which scope of coverage and which products will be affected by the tariff,” Abdul Rasheed stated. He emphasized the need to closely examine the impact on inflation, maintaining that the current inflation forecast remains between two and 3.5 percent.

Abdul Rasheed made these remarks during a walkabout session in preparation for the 12th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM). He was responding to inquiries about the potential effect of the tariff on the central bank’s inflation expectations.

When questioned about the semiconductor industry’s exemption from tariffs, Abdul Rasheed confirmed that it was indeed a relief for Malaysia, simply replying, “Yes.” It was noted that US President Donald Trump had announced on April 3 that the US would impose a basic 10 percent tariff on all countries, with higher duties involving several countries, including a 24 percent tariff on Malaysia.