Malaysia to remain competitive among Asean peers amid potential US tariff

New Straits Times

a day ago

KUALA LUMPUR: Malaysia remains competitive relative to its Asean peers despite the potential 10 per cent additional tariff imposed by the United States (US) on countries perceived to be aligned with BRICS, said MIDF Amanah Investment Bank.
In a note today, MIDF said Asean peers such as Indonesia, Thailand and Vietnam — also BRICS partner countries — could face even higher combined tariff rates of 42 per cent, 46 per cent and 30 per cent, respectively.
The new tariff, if implemented, could raise Malaysia's total tariff rate to 35 per cent, up from the current 25 per cent.
"For Malaysia, a BRICS partner, the implication of this latest threat is speculative; after the negotiation, if Malaysia were to fall under the 10 per cent blanket tariff, this additional BRICS-related tariff could potentially raise its total tariff rate to 20 per cent.
"However, at this juncture, this post is widely perceived as a threat rather than an imminent policy," MIDF said.
US President Donald Trump, in a recent post on Truth Social, imposed an additional 10 per cent tariff on countries "aligning themselves with the anti-American policies of BRICS." He did not clarify what constitutes such an alignment.
MIDF said the move may signal the US is still open to negotiations.
"In Malaysia's case, the slightly higher tariff indicates that in the event Malaysia is unable to agree, that additional 10 per cent tariff will be enacted," it added.
— BERNAMA