KUALA LUMPUR: Malaysia still has room to negotiate with the United States (US) regarding Washington’s imposition of a 24 per cent reciprocal tariff on Malaysian goods, said Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour.
He said the central bank is still awaiting further details from the US about the tariffs.
Therefore, the full impact of the tariffs on inflation can only be assessed once the negotiation process is completed and the details are finalised.
“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.
“We need to closely examine the impact on inflation. At present, our inflation forecast remains between two and 3.5 per cent,” he told Bernama during a walkabout session in preparation for the 12th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM).
Abdul Rasheed made these remarks when asked about the potential effect of the tariff on the central bank’s inflation expectations.
When asked if the semiconductor industry’s exemption from tariffs was a relief for Malaysia, Abdul Rasheed simply replied, “Yes.”
US President Donald Trump announced on April 3 that the US would impose a basic 10 per cent tariff on all countries and higher duties involving several countries, including a 24 per cent tariff on Malaysia.
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