Trade talks at a crossroads

THE one percentage point jump in the reciprocal tariff rate – from 24% to 25% – for Malaysian exports to the United States beginning August is a clear sign that the arbitrary trade policy of the White House presents a major hurdle to trade negotiations and deals.

After the softer stance taken by President Donald Trump’s administration against Vietnam and China, many would have been surprised to find the end trade war detente on July 9 resulted in a higher tariff rate for Malaysia, given that Prime Minister Datuk Seri Anwar Ibrahim had said trade negotiations had progressed well.