Malaysia’s Reciprocal Trade Agreement (ART) with the United States includes clauses that safeguard national sovereignty and ensure implementation aligns with domestic laws and economic interests.
Malaysia-US Trade Pact
Minister Tengku Zafrul emphasized that Malaysia is not blindly following US sanctions, citing Article 5.1.1 as allowing legal and diplomatic flexibility. The agreement helped reduce US-imposed tariffs from 25% to 19%, the lowest among ASEAN nations with trade surpluses.
Malaysia’s exports to the US reached RM166.38 billion from January to September 2025. The upgraded Comprehensive Strategic Partnership reflects deeper bilateral ties, but delays in ratifying ART could risk tariff hikes and undermine Malaysia’s market access.
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