The US has agreed to commence formal negotiations with Malaysia on the 24% tariff rate set to be imposed on Malaysian imports, says investment, trade and industry minister Tengku Zafrul Aziz.
Tengku Zafrul said talks will focus on three specific areas, namely reducing the 24% rate, non-tariff trade barriers and trade imbalance between the two nations.
He added that a deputy secretary-general of the ministry will be appointed to lead talks with the US, Bernama reported.
The US has already named its chief negotiator, an assistant US trade representative, said Tengku Zafrul.
The US has announced a 24% tariff on most Malaysian goods as well as a range of tariffs on about 60 countries. The tariffs have been paused for 90 days to allow for trade negotiations.
However, a 10% blanket duty on almost all US imports remains in place.
Tengku Zafrul was in the US from April 23 to 27 to lead a delegation to Washington to discuss the tariffs.
The Wall Street Journal had reported that US president Donald Trump was seeking to use tariff talks with affected countries to push them to curb trade with China and rein in Beijing’s manufacturing dominance.
In return, these nations could secure reductions in US levies and trade barriers.
In response, China issued a stark warning to countries against striking trade deals with the US at its expense, ratcheting up the trade war between the world’s two biggest economies.
