KUALA LUMPUR: Malaysia’s trade with the United States rose 10.1% in the first four months this year, even as a bilateral trade pact remains unratified and Washington continues to review new tariff measures under its trade laws.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said trade between the two countries for the January-April period increased to RM137.16bil (US$34.58bil).
This comprised exports worth RM101.54bil (US$25.60bil) and imports valued at RM35.63bil (US$8.98bil).
Responding to a question from Opposition Leader Datuk Seri Hamzah Zainudin (Perikatan Nasional-Larut) on the status of the Agreement on Reciprocal Trade (ART) between Malaysia and the US, Johari said the pact, signed on Oct 26 last year had yet to be ratified by either side.
Bilateral trade had already grown 12.3% in 2025 to RM365.07bil (US$85.29bil), up from RM325.16bil (US$71.44bil) in 2024.
The figure comprised exports of RM232.89bil (US$54.49bil) and imports of RM132.18bil (US$30.8bil), he told the Dewan Rakyat on Tuesday (June 23).
Johari also highlighted the scale of US investment in Malaysia, saying 1,018 projects involving American companies had been implemented as of 2025, with cumulative investments of nearly RM179.1bil (US$46.1bil) and the creation of 225,041 jobs.
On tariff developments, Johari said the US Supreme Court ruled on Feb 20 that reciprocal tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA) were unlawful, including the 19% tariff imposed on Malaysian goods from Aug 1, 2025.
Following the ruling, the reciprocal tariffs imposed under the IEEPA were rendered void.
However, Trump subsequently introduced a new global tariff of 10% on imports into the US under Section 122 of the Trade Act of 1974, effective Feb 24.
Johari said the measure was temporary, as Section 122 only allows tariffs of up to 15% for a maximum period of 150 days.
Based on the provision, the 10% tariff is expected to expire on July 24 this year, he added.
He said the US later initiated investigations under Section 301 of the Trade Act of 1974 on March 11 and 12 involving several trading partners, including Malaysia.
According to him, the first investigation concerns allegations that industries in 16 economies received government support that led to excess production and exports being dumped into the US market.
The second focuses on 60 economies accused of failing to enforce import bans on goods produced using forced labour.
Johari said Malaysia had participated actively in both investigations by submitting written comments, attending public hearings and joining consultation sessions.
On June 2, the US announced preliminary findings from the forced labour-related investigation, placing Malaysia among 54 economies found to have no formal legal restrictions on the importation of goods produced through forced labour.
The US Trade Representative (USTR) proposed a tariff rate of 12.5% for countries without such laws and 10% for those with legal provisions in place.
However, Johari said Malaysia had been proposed a 10% tariff rate in recognition of its commitment to implementing provisions under the ART, including those related to forced labour.
He stressed that no additional tariff had yet been imposed, as the investigation remained ongoing and affected countries had been invited to submit written feedback and participate in public hearings before a final decision is made.
The Investment, Trade and Industry Ministry will continue engaging with the USTR to ensure Malaysia’s interests and views are given due consideration, he said.
Johari acknowledged that Malaysia currently does not have legislation or a dedicated mechanism to prohibit the importation of goods produced using forced labour.
To address the issue, he said the government had established the Inter-Agency Taskforce for Forced Labour (IATFL), chaired by the ministry, to study and develop an appropriate mechanism to ban such imports.
The taskforce includes representatives from the Finance Ministry, Foreign Ministry, Home Ministry, Human Resources Ministry, Transport Ministry, attorney general’s chambers, the Customs Department, Border Control and Protection Agency, the police, Mida and Matrade.
