Malaysia may need to revisit its US trade agreement and seek legal advice after the US Supreme Court blocked Trump-era global tariffs.
KUALA LUMPUR: Malaysia may need to revisit the Agreement on Reciprocal Trade (ART) with the United States signed last October.
This follows a US Supreme Court ruling that struck down former President Donald Trump’s global tariffs.
The decision could prompt many nations to re-examine their trade deals. Malaysia’s review may include seeking legal advice on navigating any adverse impacts.
Since signing the ART on Oct 26, Malaysia has consistently stated its sovereignty and national interests remain protected. The deal was finalised after negotiations that began in April last year.
It aims to stabilise trade relations, particularly after the US imposed higher tariffs on countries with large trade surpluses. The ART also protects Malaysian exports and jobs by securing US market access.
Under the agreement, 1,711 Malaysian export product lines receive US tariff exemptions. This improves price competitiveness and strengthens Malaysia’s role in global supply chains.
The US Supreme Court ruled Trump overstepped his powers by using emergency powers to impose sweeping global tariffs. It upheld a lower court finding that the move was unconstitutional.
The 170-page ruling also addressed fentanyl-related duties applied to goods from China, Canada and Mexico. The court stated the president’s use of emergency powers for “reciprocal tariffs” is unlawful.