Investment, trade and industry minister Johari Ghani said while Malaysia signed the reciprocal trade agreement with the US last year, Putrajaya has yet to ratify the deal.
“The government is carefully assessing recent legal and policy developments in the United States,” he said in a statement.
However, Johari pointed out that Washington still had other legal mechanisms under which it could impose unilateral tariffs, among other trade measures.
He said Miti was also looking into Trump’s announcement of a 10% tariff on all imports after the US Supreme Court’s decision.
“We are studying its scope and implications. At this stage, we are awaiting further clarity on how these measures will be implemented and whether additional adjustments will follow.”
The minister said the US remained among the largest economies globally and a key trading partner for Malaysia, with RM367 billion in total trade last year, including RM233 billion in exports to the US.
“Malaysia’s position is clear and consistent. We will remain committed to open and rules based trade, to maintain a stable and predictable business environment, and to safeguard the interests of Malaysian exporters, international investors, businesses operating in Malaysia, and workers across our economy.
“At the same time, Malaysia will continue to diversify its trade relationships and strengthen regional and multilateral economic cooperation to ensure resilience in an evolving global trade environment.
“We will act in Malaysia’s best interests while preserving strong bilateral relations with the US,” Johari said.
In a split six-three decision yesterday, the US Supreme Court ruled that Trump exceeded his authority in imposing the tariffs under the International Emergency Economic Powers Act, or IEEPA.
The US president later said he would impose a uniform tariff of 10% on all imports under a separate authority.
Malaysia and the US signed the reciprocal trade agreement when Trump visited Kuala Lumpur for the Asean summit last year. The deal maintained the 19% tariffs on Malaysian goods, but certain products enjoyed zero tariffs under aligned partner-trade lists.
Miti is in the midst of conducting a review and cost-benefit analysis of the agreement to safeguard Malaysia’s economic interests and sovereignty.