Malaysia’s next trade steps depend on US Supreme Court ruling on Trump tariffs, says minister, as semiconductor sector negotiations continue.
KUALA LUMPUR: Malaysia will determine its next trade course based on the United States Supreme Court ruling regarding President Donald Trump’s tariffs.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government will seek legal advice if the outcome adversely affects Malaysia.
“When you sign an agreement, you need to have the right intention,” he told reporters during his ministry’s third quarter 2025 report card presentation.
“As the Malaysian government, if we have committed, we must show that commitment, or our credibility is at stake.”
He explained Malaysia would await Congressional developments if the federal court clears the presidential decision.
Tengku Zafrul highlighted significant growth potential in Malaysia’s semiconductor sector amid ongoing Section 232 negotiations with the US.
The US will give special consideration to Malaysia’s semiconductor sector in tariff talks under Section 232 of the US Trade Expansion Act.
Currently, 1,711 Malaysian exports to the US enjoy zero tariffs under the Agreement on Reciprocal Trade signed between both nations.
Semiconductors are not included in those 1,711 products but currently face zero tariffs.
“To be frank, under Section 32, there’s still negotiation,” Tengku Zafrul said.
“There’s still a review and study on how it impacts the economic security of the US.”
He noted the ART signing creates better semiconductor negotiation opportunities.
Malaysia will prioritize opening new markets, as shown in Budget 2026’s 100% increase in the Market Development Grant.
The government aims to deepen Malaysia’s presence in existing markets, particularly in Latin America and Africa. – Bernama
