PETALING JAYA: With the Aug 1 deadline looming for the 25 per cent US tariffs on Malaysian goods, a phone call between the White House and Putrajaya has helped strike a deal to slash the import tax, according to a news report.
The Straits Times reported that official sources claim that the call between US President Donald Trump and Malaysian Prime Minister Datuk Seri Anwar Ibrahim had took place on Thursday (July 31) and a lower tariff of 15 to 20 per cent would be announced on Friday (Aug 1).
The report said that Malaysia had conceded on several issues, including halal certification and the supply of rare earths, a critical mineral used in advanced technological applications.
“The call was made earlier this (Thursday) morning after it was proposed by the Americans just a few hours back,” said a top Malaysian Government official with direct knowledge of the matter to the news portal.
The agreement also supposedly included Malaysia recognising US halal certification on several products, including pharmaceuticals, allowing US products to bypass halal certification with the Malaysian Islamic Development Department (Jakim).
The portal also said that Malaysia was set to supply the United States with rare earth elements.
"The country currently holds rare earth deposits of more than 16 million tonnes that are worth an estimated RM1 trillion. Rare earth ore mined in Malaysia is currently exported to China since Malaysia lacks the requisite technology to process it," said the report.
