Minister of Investment, Trade and Industry warns US tariffs could jump to 100% without the ART, threatening Malaysian exports and jobs
PETALING JAYA: Malaysia could have face US tariffs soaring from the current 19% back to 24%, or even as high as 100%, if the Agreement on Reciprocal Trade (ART) is not signed promptly, warned Minister of Investment, Trade and Industry (MITI) Datuk Seri Tengku Zafrul Abdul Aziz in Parliament today.
“If it is not signed promptly, Malaysia faces the risk that the US government could raise tariffs back to the original 24%, or to much higher levels — 30%, 40%, 50%, or possibly even 100%.
“We know that the United States is capable of such action, as demonstrated in negotiations with other countries.
“If the agreement is not finalised, there is a high likelihood that tariffs will increase, which would in turn undermine the competitiveness of Malaysia’s exports to the US market.”
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He said that such a move could seriously threaten jobs, incomes, and business confidence, and destabilise investment in the country.
“Who will bear this burden? Who will suffer losses or go bankrupt? Our companies!
“Who will lose jobs and income? Malaysians themselves,” Tengku Zafrul said.
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He also warned that investor confidence could be eroded, as businesses may hesitate to invest or expand in Malaysia amid uncertainty.
“Predictability and foresight are extremely important. Investors do not invest in a country that hesitates to protect its own export markets,” he said.
The minister stressed that signing the ART ensures continued access to the US market and provides the certainty needed for economic stability, particularly for sectors such as electrical and electronics, aerospace, rubber, cocoa, and pharmaceuticals.
