Kuala Lumpur: Malaysia’s trade is certain to suffer but so would the United States if the one-time superpower were to impose import tariffs at 100 per cent, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz told Parliament today.
He said this is because both countries are economically interdependent on each other and would face trade hiccoughs that would disrupt the global supply chain.
“Any move to impose a 100 per cent tariff would only incur losses for both parties who are interdependent to prevent disruptions in the global supply chain,” he replied to Bentong MP Young Shefura Othman.
The US is Malaysia’s third largest trading partner while Malaysia is the United States’ 19th largest trading partner.
Earlier this week, US president-elect Donald Trump threatened members of the Brics economic group that now counts Malaysia a partner with 100 per cent tariffs if it went ahead with a proposal to create a common currency to compete with the US dollar.
Tengku Zafrul said the currency idea had been discussed at the last Brics summit in Russia, no formal agreement was reached.
He added that Putrajaya would need to conduct its own assessments before deciding on changing to any other currency.
He said that Malaysia, as a Brics partner, will monitor the Trump’s second time in office to identify any developments that may affect its ties with the US.
