KUALA LUMPUR: Datuk Seri Anwar Ibrahim says the government should be given time and space to assess the tariff situation with the United States.
The Prime Minister said this was because President Donald Trump could use other provisions under US law to implement tariffs, despite the country’s Supreme Court striking down his earlier decision.
“We have to look at the implications for our country in terms of trade and investment. If the decision we take will benefit the economy and our people, we have to continue (with the Agreement on Reciprocal Trade or ART). We cannot rush to make a decision,” he said during Prime Minister’s Question Time at Dewan Rakyat yesterday.
Trump’s new global tariffs have come into effect at 10% despite a pledge to introduce them at a higher rate.
After the Supreme Court blocked many of his sweeping import taxes last Friday, the president said he would introduce a 10% global rate and then said on Saturday that the rate would be 15%.
However, it was reported that the tariffs have been set at the lower rate starting from yesterday.
Anwar said the US administration still had room to invoke Section 232 and Section 301 of the US Trade Act of 1974 to impose tariffs.
“We do not know whether the US Congress will agree with the Supreme Court or have differing views. The executive orders on these new global tariffs must be monitored closely,” he said in response to Hulu Terengganu MP Datuk Rosol Wahid’s query on Malaysia’s position after the US Supreme Court’s decision.
Anwar said the temporary tariff, which will be in effect for 150 days, would benefit the country because it was lower than the 19% under ART.
He said the government did not want to make any hasty decision that could potentially jeopardise the country’s trade interests with the United States being a key trading partner.
In 2025, Malaysia’s exports to the US stood at RM233.1bil, with total bilateral trade amounting to RM367.5bil.
Five Perikatan Nasional MPs, including Rosol, had filed an originating summons to seek a Federal Court ruling on key constitutional issues regarding the validity of the ART agreement, which they alleged was signed without proper parliamentary approval.
On this, Anwar said he would let the courts interpret the matter.
“I have no objection at all, whether the outcome favours the initial claimant or the government’s previous position,” he added.
The Prime Minister also said American companies trading with Malaysia were the ones impacted by US tariffs and not the other way around.
“The tariffs are imposed on American companies trading with Malaysia. Based on our survey, the impact on Malaysian companies has been rather minimal.
“Based on information from Miti (Investment, Trade and Industry Ministry), Malaysian companies have not been impacted. I reiterate that the tariffs are for American companies trading in our country because Trump’s strategy is to force these companies to invest in the United States and not overseas,” he added.
Meanwhile, Miti Minister Datuk Seri Johari Ghani (pic) said the ministry was conducting a cost-benefit analysis on the ART agreement, adding that the findings would be taken into account on whether to ratify the agreement.
“The government remains committed to safeguarding national interests and ensuring that any implementation of the agreement does not affect existing policy directions or Malaysia’s economic security,” he said in a parliamentary written reply.
