Malaysia tells US it is open to talks on trade deficit and non-tariff barriers to reduce tariffs

The Malaysian delegation, led by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, told US trade representatives that Malaysia is open to talks on reducing the trade deficit, addressing non-tariff barriers, improving technological security, and exploring a potential trade agreement.

It will also look at improving technological security, and exploring a possible bilateral trade agreement.

The Malaysian delegation, led by Zafrul, met with US trade representatives on Thursday, including Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer, in Washington DC to discuss the reciprocal tariff the US had imposed on Malaysian goods.

“These first meetings with US Secretary of Commerce Howard Lutnick and US Trade Representative Ambassador Jamieson Greer are a step in the right direction. We will continue to keep the momentum by following up urgently on some of the key issues discussed within the 90-day period since the pause started. Malaysia also stressed that all communications line remain open, and we will continue to work towards an amicable solution to this reciprocal tariff matter,” Zafrul said in the statement.

Under the US’ reciprocal tariff framework, a 24% duty is imposed on Malaysian goods entering the US. There is currently a 90-day pause on the implementation of the new duties. A blanket 10% tariff on all goods entering the US, with few exceptions, is already in place.

The Ministry of Investment, Trade and Industry (Miti) said it views the 90-day pause on the proposed 24% tariff as a chance for constructive engagement. 

Additionally, the discussions included how the US can work more closely with Asean, especially with Malaysia chairing Asean this year.

Miti emphasised the long-standing and important economic relationship between Malaysia and the US, noting that American companies had made significant contributions to Malaysia’s economy. 

It also pointed out the positive trend in bilateral trade over the last decade, with a decrease in the US trade deficit with Malaysia.

Source: The Edge Malaysia