KUALA LUMPUR: Malaysia was in the midst of tariff negotiations with the United States when President Donald Trump announced that they would impose a 25% rate on Malaysia, says Datuk Seri Tengku Zafrul Abdul Aziz.
However, the Investment, Trade and Industry Minister said he was optimistic as there was still time for both the United States and Malaysia to reach a more balanced and pragmatic outcome.
"The tariffs will only take effect on Aug 1, which gives us some time. The initial 90-day deadline ended Tuesday (July 8).
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"Negotiations will proceed and I contacted my US counterpart, US trade representative ambassador Jamieson Lee Greer, on Tuesday. We will have a video call on Thursday.
"Also on Thursday, the Prime Minister will be meeting US Secretary of State Marco Rubio," he said at a press conference here on Wednesday (July 9), adding he would also be present," he said.
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Tengku Zafrul said during negotiations with the United States, Malaysia had stood its ground on issues that touched on national interests and sovereignty, adding that the country would continue to do so.
"We negotiated in good faith, with considerable give and take, while standing firm on crucial matters of national interest and sovereignty. There were specific 'red lines' that we would not compromise on," he said.
Asked what these were, he cited areas such as government procurement policies, digital laws and digital taxation.
"We discussed our right to impose a digital tax.. (which)we view it as our sovereign right," he said.
He also said the United States had accepted Malaysia's stance on certain matters.
"On some of the issues, after explanation and elaboration, the United States accepted our reasoning," he said.
Tengku Zafrul also rejected the suggestion that the imposition of a 25% tariff was a loss for Malaysia.
"We don't want to reach a deal for the sake of having a deal. If we can reach an agreement that is balanced and benefits Malaysia and Malaysian companies, then of course we will proceed.
"But if the deal does not benefit Malaysia, then we cannot proceed – we must be firm on that," he stressed.
He also dismissed speculation that the 25% tariff was linked to Malaysia's association with BRICS.
