From Jaziri Alkaf Abdillah Suffian

I refer to last week’s announcement by US president Donald Trump regarding the imposition of a 15% global tariff (up from the original 10%) on all of America’s trading partners.

This policy shift, following the US Supreme Court’s ruling against his earlier levies, carries significant implications for Malaysia’s trade relations, export competitiveness, and overall economic resilience.

It is increasingly evident that the US is using trade and tariffs as instruments of geopolitical leverage.

This was clearly demonstrated during the signing of the reciprocal trade agreement, where bilateral trade arrangements were secured to the advantage of the US.

The trade deal was negotiated to maintain US tariffs at 19% while exempting over 1,700 Malaysian export lines, thereby offering Malaysia preferential treatment and stability.

However, the newly proposed 15% global tariff differs fundamentally from the reciprocal trade agreement.

Unlike the bilateral exemptions under the trade deal, the new tariff is a blanket measure applied to all trading partners, overriding prior commitments and eroding Malaysia’s relative advantage.

This contradiction raises critical questions: How does this new tariff regime reconcile with the trade deal?

What assurances exist for Malaysia’s industries and investors in such a volatile environment?

Perhaps more importantly, why did we hastily commit to enormous investment pledges only to face with the reality that we might have been better off waiting.

The deal, by all rights, must be nullified.

This ongoing instability undermines market confidence and clarity in global trade and investment.

Malaysia must not hastily ratify the deal under these circumstances as doing so risks further compromising our national economic sovereignty.

In light of these developments, we respectfully urge the Malaysian government to provide a clear and timely response.

It is crucial to outline Malaysia’s position, assess the potential impact on our industries and communicate the measures that will be taken to safeguard our national interests.

Proactive engagement and transparency will reassure businesses, investors and especially our citizens that Malaysia is prepared to navigate this evolving global trade environment.

Malaysia must stand on the principle of open and fair trade in international trade.

Jaziri Alkaf Abdillah Suffian is a former senator and chair of Bersatu’s international affairs bureau.

The views expressed are those of the writer and do not necessarily reflect those of FMT.