Kuala Lumpur, July 22, 2025 – The Europe Today: Malaysia will not yield to geopolitical pressure or rhetoric in its ongoing negotiations with the United States over trade tariffs, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz stated on Tuesday.
Speaking in the Dewan Rakyat in response to a question from Mohd Syahir Che Sulaiman (PN–Bachok), Zafrul emphasized that Malaysia will adopt a strategic and principled approach in safeguarding the country’s economic sovereignty and national interests.
“We will not take the easy way out and will not bow to pressure. We will negotiate based on facts and strategy to defend local jobs, maintain investor confidence, and most importantly, uphold the nation’s sovereignty,” he affirmed.
Rather than retaliating, the minister said Malaysia remains committed to engaging in dialogue with the United States over the reciprocal trade tariffs introduced under former President Donald Trump’s policy.
Malaysia faces a significant challenge following Trump’s April 2 announcement of a 24% tariff on Malaysian products, which was further raised to 25% effective July 7, after the expiry of a 90-day grace period. The new tariff rate is scheduled for implementation on August 1, though negotiations are still ongoing.
Zafrul assured Parliament that Malaysia will stand firm on key national policies, including Bumiputera equity requirements in local businesses, government procurement practices, and halal certification standards for U.S. exporters.
“All U.S. companies exporting to Malaysia must obtain halal certification from the Malaysian Islamic Development Department (Jakim),” he stressed.
The minister also highlighted that Prime Minister Datuk Seri Anwar Ibrahim had announced a series of support measures on May 5 during a special Parliament session to help Malaysian businesses mitigate the impact of the U.S. tariffs.
These measures include an additional RM1 billion in government guarantees under the Business Financing Guarantee Scheme, aimed at assisting affected small and medium-sized exporters. Furthermore, development finance institutions have increased soft loan facilities by RM500 million to support SME entrepreneurs.
Zafrul concluded by reiterating that Malaysia is entering these negotiations from a position of economic strength and remains confident in its ability to navigate the current trade challenges effectively and responsibly.
