Malaysia’s trade minister, Johari Ghani, has stated that the country would have faced significantly higher import duties from the United States if a bilateral agreement had not been reached last year.
He pointed to the punitive rates imposed on other nations, which reached as high as 145 per cent, to underscore the severity of the alternative outcome for Malaysian exporters.
The comments arrive as Washington continues to scrutinise trade practices in Southeast Asia.
While the previous deal shielded Malaysia from the most extreme reciprocal tariffs, a separate investigation into alleged forced labour practices is nearing its conclusion.
US officials are reportedly preparing to impose an indicative 10 per cent tariff if the findings are confirmed, a move that would still represent a substantial cost increase for affected sectors.
Malaysia’s Ministry of International Trade and Industry (Miti) has reaffirmed its commitment to ongoing negotiations with the United States regarding these broader trade measures.