Malaysia becomes first country to cancel tariff deal with Trump

Malaysia on Wednesday officially confirmed that its trade deal with Washington had been terminated, after the US Supreme Court struck down President Donald Trump’s “reciprocal” tariffs.

Malaysia became the first country to terminate a similar agreement with the Trump administration after a court ruling last month, Nikkei reported.

Other countries, including Indonesia and Cambodia, are currently reviewing similar deals without ratifying them. Washington, however, has insisted that governments that signed them abide by them until the court’s ruling.

“The deal is not suspended. It is no longer there, it is invalid,” said Commerce Secretary Johari Abdul Ghani, commenting on the status of the document.

He explained that according to the US Supreme Court ruling, tariffs must be justified and cannot be applied automatically. Under the October agreement, most exports from Malaysia to the United States were subject to a 19% tariff.

“The United States must provide reasons, including which industries are affected,” the minister said.

The agreement was signed by Malaysian Prime Minister Anwar Ibrahim and Donald Trump during the ASEAN summit in Kuala Lumpur, along with an agreement to cooperate on the supply of critical minerals.

According to Nikkei sources, Anwar Ibrahim plans to meet Trump in Washington in April to discuss further trade policy and reduce tensions between the countries.

Tags: Malaysia, USA, duties