Down to business: Tengku Zafrul briefing the media on the Miti 2025 Third Quarter Performance Report Card at Menara Miti, Kuala Lumpur. — SAMUEL ONG/The Star
KUALA LUMPUR: Malaysia will seek legal advice on the Agreement on Reciprocal Trade (ART) with the United States once the US Supreme Court delivers its decision on tariff powers, says Tengku Datuk Seri Zafrul Abdul Aziz.
The Investment, Trade and Industry (Miti) Minister said Malaysia’s decision to sign the deal last month – witnessed by President Donald Trump and Prime Minister Datuk Seri Anwar Ibrahim – reflected the nation’s commitment to safeguarding its trade interests and credibility, even as Washington’s tariff policies face legal scrutiny.
He said that delaying signing the agreement would not have been the proper attitude as Malaysia was committed to sign the deal with the US to safeguard the nation’s rights and sovereignty.
The Miti minister said this during a media conference announcing the 2025 Third Quarter Performance Report Card at the ministry yesterday.
He was asked on the ongoing US court case challenging Trump’s authority to impose wide-ranging tariffs, where justices have questioned whether he can implement such measures without Congress’ approval.
In another case, more than 700 small US businesses have also taken the US government to court as part of the “We Pay the Tariffs” coalition.
“When you sign an agreement, you need to have the right intention. If your strategy is you want to sign but you want to rectify after or wait for something else, that is beyond our control.
“I think that is not being honest – unless you are suggesting for me to do that. I am not willing to do that. If Malaysia’s government is committed, it must demonstrate that commitment. Our credibility is at stake.
“Let’s say the court made a decision and President Trump has to go to Congress because he is deemed as the president and has executive power on tariffs, then we will wait until that happens in Congress. Then whatever the result, we will follow the legal process.
“If it (the court decision) has an impact on us, we will get legal advice on how to move forward.
“But I don’t think anyone should do that. When we sign an agreement, but then we actually don’t want to sign and we want to wait for something else – I think that is not the right attitude (when signing an agreement),” said Tengku Zafrul.
The ART between the United States and Malaysia was witnessed by President Trump and Prime Minister Datuk Seri Anwar Ibrahim on Oct 26 during the Asean Summit 2025 here.
This agreement sets specific, stable tariff rates, such as a 19% rate on certain items, intended to provide certainty and relief for Malaysian exporters amidst broader, fluctuating US tariff regimes.
Earlier, in his presentation of the 2025 Third Quarter Performance Report Card, Tengku Zafrul stated that the ART has charted a promising future potential.
“There will be an expansion of RM22bil export based on 1,711 tariff lines exempted from the 19% reciprocal trade,” said Tengku Zafrul.
On the issue of his looming exit as Miti minister, Tengku Zafrul said that his last day in the ministry would be on Dec 2 and he has offered to assist his successor.
“My last day at Miti is Dec 2. As I am no longer in the Dewan, I cannot continue to serve as minister. Whoever is in charge of Miti will have to take over. I can assist the minister in charge then.
“There is no discussion yet on an advisory role (after my exit), but if there is a need... I have already engaged with the Prime Minister on my intention to assist. So, now, we are waiting for the Prime Minister’s decision on this on my role after my exit,” said Tengku Zafrul.
As this is his second term as a senator, Tengku Zafrul is not allowed to be given a new term in the Senate.
