Malaysia denied a US claim that it imposes a tariff of 47% on American imports and said it will continue to engage with Washington to find a fair solution to trade issues.
“Reciprocal tariffs do not serve the principles of free and fair trade stipulated under the World Trade Organization,” the trade ministry said in a statement late Friday, which refuted the US authorities' assertion that Malaysia charges levies that amount to a 47% tariff on American goods coming into the country.
The Southeast Asian nation was slapped with a 24% tariff by President Donald Trump this week as part of broader measures by the US to counter what it said were large trade imbalances with trading partners. The move marks a dramatic follow-through on Trump's long-held grievances, which risks triggering retaliation from other countries and upending calculations for businesses and consumers.
The Malaysian government is still assessing the impact of the US tariffs and is putting this year's economic growth forecast of 4.5%-5.5% under review, but it does not foresee a recession or a fundamental slowdown.
“The precise impact is expected to be significant and will be clearer once more information is received on the implementation timeline, tariff rates, product coverage (including exemptions), and the outcome of trade negotiations,” it said.
The government will strengthen the country's supply chain and diversify trade and investment interests as part of measures to mitigate the impact. It will also discuss the broader implications of the tariffs in the upcoming special meeting of Association of Southeast Asian Nations economic ministers on April 10.
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