Kuala lumpur: The outcome of the United States (US) Supreme Court ruling on the legality of US President Donald Trump’s tariffs will determine Malaysia’s next course of action, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. The government will seek legal advice on how to manoeuvre if the results impact Malaysia adversely, he said.
According to BERNAMA News Agency, Tengku Zafrul emphasized the importance of intention when signing agreements, noting that delaying ratification or waiting for external factors is not an honest approach. He stated that Malaysia must demonstrate its commitment to agreements or risk damaging its credibility. He also mentioned that they would wait for Congress to act if the federal court clears the decision.
The media questioned Tengku Zafrul about the US court ruling’s implications and potential delays in ratifying the Malaysia-US agreement. He noted that Malaysia sees significant growth potential in the semiconductor sector and is committed to ensuring favourable outcomes in the ongoing Section 232 negotiations with the US.
According to MITI, the US will give special consideration to Malaysia’s semiconductor sector in tariff negotiations under Section 232 of the US Trade Expansion Act of 1962. Currently, 1,711 Malaysian exports to the US enjoy zero tariffs under the Agreement on Reciprocal Trade (ART), though semiconductors are not included in this list. However, tariffs for semiconductors remain at zero for now.
Tengku Zafrul acknowledged the ongoing nature of negotiations under Section 32, highlighting the potential for future discussions and reviews concerning the economic security of the US. He expressed optimism that the ART signing opens opportunities for better negotiations on semiconductors.
In addition, Tengku Zafrul stated that Malaysia will prioritize opening new markets, as indicated in Budget 2026, where the government has doubled the Market Development Grant to support Malaysian companies expanding abroad through the Malaysia External Trade Development Corporation. He also mentioned Malaysia’s aim to deepen its presence in existing markets, particularly in Latin America and Africa, where Malaysian firms already have a presence.