Malaysia Trade Minister Leading Team to US in Attempt to Avert Tariff War

KL Hopes to Understand US Position So It Can Plan Strategy

- Shannon Teoh

KUALA LUMPUR - Malaysia is making haste to minimise the impact of any additional tariffs from the US on not just its own economy but also that of South-east Asia in its role as Asean chair, despite a three-month pause announced by the US just before the April 9 implementation of the tariffs.

Investment, Trade and Industry Minister Tengku Zafrul Aziz will lead a delegation to Washington on a three-day mission beginning on April 22 that will include a dialogue with US Trade Representative Jamieson Greer, though a meeting with Secretary of Commerce Howard Lutnick has yet to be confirmed.

While recognising that negotiations with Washington will be a drawn-out affair, he is seeking to understand the US position early, given the July deadline before the tariffs — amounting to 24 per cent on Malaysia — come into force.

"The main aim of this trip is to gather insights into the US government's stand... to better plan our strategy to mitigate its impact, as well as how to best go forward in negotiations," Datuk Seri Zafrul told The Sunday Times in an interview after returning from Bangkok on April 18.

It "is not possible within the span of such a short trip" to finalise a deal to reduce or abolish the tariffs, he added.

This has also been the experience of Japanese and Indonesian officials, with Jakarta saying on April 18 that it hopes to conclude talks in 60 days.

America's April 2 announcement of import levies against all its trading partners shocked the rest of the world, although US President Donald Trump announced a 90-day delay right at the 11th hour before the April 9 implementation date. This has led to a queue of nations seeking to talk terms with Washington.