KUALA LUMPUR, May 6 — Prime Minister Datuk Seri Anwar Ibrahim today confirmed that Malaysia has initiated early discussions with the United States on the 24 per cent “reciprocal” tariffs imposed under the US “Liberation Day” trade policy. During a special parliamentary session, Anwar revealed that Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz met with key US trade officials in Washington DC last month, yielding encouraging initial outcomes.
Malaysia has also offered to address several non-tariff barriers highlighted in the US 2025 National Trade Estimates Report as part of its appeal for exemption. Despite the early progress, Anwar cautioned that the retaliatory tariffs could still severely impact the country’s economic trajectory. He acknowledged that Malaysia may fall short of its 2025 growth target of 4.5 to 5.5 per cent, as global growth slows under the weight of widespread trade restrictions.
The IMF has revised Malaysia’s growth outlook to 4.1 per cent, and both the Ministry of Finance and Bank Negara Malaysia are currently reassessing the national forecast pending the outcome of negotiations. Anwar also highlighted regional collaboration as a critical response strategy, noting that Malaysia hosted a Special ASEAN Economic Ministers’ Meeting in April that resulted in a unified stance on US trade actions.
“With a combined economy of US$4 trillion and 640 million people, ASEAN must act collectively,” he stressed. The government is additionally seeking to diversify trade by strengthening intra-ASEAN commerce and pursuing new markets in Europe, the Middle East, and South America.
