KUALA LUMPUR: All eyes will be on the Dewan Rakyat on Monday as Members of Parliament convene for a special sitting to deliberate on the United States’ (US) surprise imposition of retaliatory tariffs on Malaysian exports – a move that has sparked concern across government and industry.
The session is expected to feature robust debate as lawmakers weigh the implications of the US decision and consider Malaysia’s diplomatic and economic options.
The tariffs, announced by US President Donald Trump on April 2, include a sweeping 10 per cent baseline duty on all countries and a steeper 24 per cent levy specifically targeting Malaysian goods.
The move is reportedly part of Washington’s broader effort to recalibrate trade relationships and address longstanding trade deficits.
Ahead of the sitting, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz led a high-level delegation to Washington on April 24, where he held talks with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer.
During the meetings, he emphasised the importance of continued engagement and reiterated Malaysia’s willingness to address US concerns constructively.
Malaysia expressed openness to negotiations on four key areas: reducing the trade deficit, addressing non-tariff barriers, strengthening technological safeguards and security, and exploring a potential bilateral trade agreement.
“These first meetings with the US Secretary of Commerce and the US Trade Representative are a step in the right direction. We will continue to keep the momentum by following up urgently on some of the key issues discussed within the 90-day period since the pause started,“ said Tengku Zafrul in a press statement on April 25.
He also welcomed the US decision to pause tariff implementation for 90 days, calling it a “window of opportunity” to resolve the matter diplomatically.
On April 9, 2025, the US administration announced a 90-day postponement of the individualised reciprocal tariffs for most countries while maintaining the baseline tariff of 10 per cent indefinitely.
As a result, the 24 per cent reciprocal tariff on Malaysian imports into the US will be postponed during the 90-day window (April 9, 2025, until July 8, 2025), with the 10 per cent baseline tariff applied instead.
This decision was made to facilitate negotiations with over 75 countries that have expressed concerns about the tariffs. Meanwhile, the US administration has imposed additional duties on Chinese imports, raising the total tariff rate on Chinese-origin goods to 145 per cent.
The May 5 special sitting, convened at the request of Prime Minister Datuk Seri Anwar Ibrahim, will serve as a key platform for ministers to brief Parliament on the government’s response and outcomes of recent bilateral engagements.
It will also address the broader economic impact of the US tariffs and outline coordinated responses across ministries and sectors.
According to a parliamentary statement, the sitting was convened under Standing Order 11(3) of the Dewan Rakyat Standing Orders, which allows for urgent matters of public interest to be debated. Ministerial briefings under Standing Order 14(1)(i) will cover the US action, its implications for Malaysia, and the government’s coordinated response.
As tensions simmer and global markets monitor developments, Monday’s session is likely to set the tone for Malaysia’s next steps in what could evolve into a significant chapter in its trade relations with the US.
