Putrajaya may seek legal advice on trade deal if US court ruling affects tariff terms, says Zafrul

TheEdge Thu, Nov 13, 2025 12:54pm - 1 week View Original


KUALA LUMPUR (Nov 13): Malaysia may seek legal advice on ratifying its trade deal with the US if the upcoming court ruling on President Donald Trump’s tariff powers affects the agreement, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Trump’s authority to impose wide-ranging tariffs is currently being challenged at the US Supreme Court, where justices have questioned whether he can implement such measures without Congress’ approval.

“Let’s say the decision is that he (Trump) must go to Congress — then we will wait until that happens. Whatever the result, we follow the legal process. If it has an impact on us, we will get legal advice on how to move forward,” Zafrul told reporters after the release of the ministry’s third-quarter report card on Thursday.

He stressed that Malaysia must act with integrity in handling the agreement. 

“When you sign an agreement, you need to have the right intention. If your strategy is to sign but ratify later — or wait for something outside our control — that is not honest. I am not willing to do that. If we are committed as the government of Malaysia, we must show that commitment. Our credibility is at stake,” he said.

Malaysia and the US signed a reciprocal trade agreement on Oct 26, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Trump, who was in Kuala Lumpur for the 47th Asean Summit and Related Meetings.

Under the deal, the US maintains a 19% tariff on Malaysian goods, while 1,711 product lines will receive either full exemptions or lower tariff rates. 

The full list will be finalised once both governments complete the legal ratification process, expected within 60 days after the exchange of documents.

Asked whether Malaysia could make adjustments before ratification, Zafrul said there is room for changes, “but any adjustment has to be mutual”.

The trade deal has drawn criticism from some opposition politicians and civil society groups, who argue that the agreement is lopsided and may undermine Malaysia’s sovereignty. 

Concerns include a clause that appears to require Malaysia to align with US sanctions or trade positions on third countries, as well as fears that the deal could bypass local procurement safeguards and reduce oversight of foreign investment.

The government has defended the pact, stating that Malaysia’s sovereignty remains intact and that Putrajaya retains the right to act in national interests.

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Andre V
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Bodoh! You couldn't wait for the Supreme Court ruling is it?

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