KUALA LUMPUR: Putrajaya refutes the claim by the US authorities that Malaysia has imposed 47 per cent tariff on US imports into Malaysia and emphasises that reciprocal tariffs do not serve the principles of free and fair trade stipulated under the World Trade Organisation, of which 164 countries, including the US, is a member.
The Ministry of Investment, Trade and Industry (MITI) said in a statement that the economic impact of the latest US tariff measures is still being assessed.
“While our earlier projections were based on a cautious outlook, the scope and severity of the tariffs have exceeded even our most conservative assumptions. As such, the 2025 Gross Domestic Product (GDP) growth forecast of 4.5 per cent – 5.5 per cent is currently under review,” it said.
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.
The speed and scale of retaliatory actions by other economies will also influence the final outcome.
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However, the MADANI Government does not foresee a recession or a fundamental slowdown.
Economic growth remains forthcoming, underpinned by resilient household spending, strong domestic investment, healthy tourism receipts, and the continued implementation of national masterplans.
“Our sound economic fundamentals will enable us to weather this challenge from a position of strength and preparedness.”
MITI said that in the spirit of maintaining positive and progressive relations with all trading partners, the MADANI Government will continue to engage with the US to find an amicable and fair solution to the reciprocal tariff issue.
“During this trying period, the government will continue to prioritise Malaysia’s interests, for the well-being of our people, businesses and exporters,” it added.
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In a meeting today, MITI said the MADANI Government discussed various key measures to weather the tariff storm, including strengthening Malaysia’s supply chain, as well as diversifying its trade and investment interests.
Strategic high-level engagement with the US will continue, leveraging on the Malaysia-US Trade and Investment Framework Agreement (TIFA).
MITI and relevant ministries will continue to engage with the industry and exporters for all of us to weather through this testing period based on a whole-of-nation approach, and with a view to support impacted industry sectors to mitigate the impact of the tariffs.
