Malaysia has expressed its openness to exploring the possibility of a bilateral trade agreement with the US, as part of wider efforts to address trade tensions sparked by “reciprocal” tariffs by the Donald Trump administration.
This was one of the four key negotiation areas discussed during investment, trade and industry minister Tengku Zafrul Aziz’s meeting in Washington on Thursday with US Secretary of Commerce Howard Lutnick and US trade representative Jamieson Greer.
The other areas are reducing the US-Malaysia trade deficit, addressing non-tariff barriers, and strengthening technological safeguards and security.
In a statement today, the ministry said Tengku Zafrul described the talks as “a step in the right direction” and reaffirmed Malaysia’s commitment to follow up on some of the key issues discussed.
“Malaysia also stressed that all communication lines remain open, and we will continue to work towards an amicable solution to this reciprocal tariff matter,” he said.
The ministry said Malaysia welcomed the 90-day pause by the US on implementing the proposed tariffs, viewing it as an opportunity for “constructive engagement”.
It reiterated that it does not intend to retaliate but “stands ready to collaborate on mutually agreeable outcomes to the concerns” raised by the Trump administration.
The US has long been one of Malaysia’s top economic partners, with American firms playing a major role in key sectors such as electrical and electronics manufacturing.
Still, Malaysia was slapped with a 24% “reciprocal” tariff when Trump announced a raft of trade measures on April 2 targeting multiple countries.
The ministry said the US trade deficit with Malaysia has narrowed in recent years, indicating a more balanced trade relationship.
“Therefore, Malaysia will seek to explore alternative ways to address the US’s concerns, while ensuring that the mutually beneficial trade flows between Malaysia and the US will continue.”
Beyond tariffs, the two sides discussed closer cooperation between the US and Asean, as Malaysia holds the Asean chairmanship this year.
