Malaysia-US reciprocal trade agreement void – Johari

Remember the reciprocal trade agreement (ART) Malaysia signed with the US in October? According to the New Straits Times, Malaysian investment, trade and industry minister Johari Ghani has revealed that said ART is now null and void after a US Supreme Court ruling overturned most of US president Donald Trump’s broad tariffs.

“It is not on hold. It’s null and void. The US Supreme Court has ruled that if you want to impose tariffs, you must have reasons. If they claim it is due to a trade surplus, they must specify the industry involved. They cannot impose tariffs on a blanket basis,” he said.

Johari added that the US is now relying on Section 122 of its Trade Act of 1974 to impose temporary five-month tariffs of up to 10% on countries found to be violating international trade rules.

The ART was supposed to impose a 19% rate on Malaysian goods, although certain products would be tariff-free under aligned partner-trade lists. Malaysia currently is subject to a global tariff of 10%. Trump has since said he will impose global tariffs of 15% to replace the tariffs scrapped by the court, after he initially announced a 10% levy on all goods entering the US.

Free Malaysia Today reports that the US is now looking into the acts, policies and practices of 15 trade partners, Malaysia and the European Union included, under Section 301 of the US Trade Act of 1974, to investigate if there are violations of international trade rules. This could be used to determine new tariffs.

Looking to sell your car? Sell it with Carro.