KUALA LUMPUR (March 12): The Malaysian government is prepared to address any negative spillover effects from Washington’s imposition of high tariffs, particularly over the long term, according to Deputy Investment, Trade and Industry Minister Liew Chin Tong.

Speaking in the Dewan Negara on Tuesday, the deputy minister noted that the shift in global trade dynamics, driven by US President Donald Trump’s policies, could dampen demand for products from countries facing higher tariffs.

"These affected nations may seek new markets or redirect their excess supply to existing ones, potentially impacting Malaysia’s export sector and increasing competition for domestic producers," he said during the winding-up of the debate on the motion of thanks for the royal address.

Liew, however, stressed that it is still too early to assess the full extent of Trump’s trade policies on Malaysia, adding that the government will continue to monitor global trade trends and implement appropriate strategies to cushion any adverse effects on the economy.

Trump’s protectionist stance is aimed at boosting the US economy and reducing its dependence on foreign trade, Liew pointed out. “However, such aggressive trade policy shifts will inevitably have repercussions on global trade, including Malaysia, given that the US remains the world’s largest economy,” he added.

In a fresh escalation of trade tensions, Trump threatened Canada with steeper steel tariffs, only to backtrack after Ontario announced it would suspend a largely symbolic 25% surcharge on electricity exports to the US.

The ongoing tariff dispute between the US and Canada has seen a series of threats and countermeasures, with some tariffs set to take effect imminently, while others hinge on whether Canada decides to lift its own countermeasures.

Others facing renewed US tariffs include China, with tariffs of at least 20% slapped on certain goods from the country.

To safeguard Malaysia’s trade position, Liew said the Ministry of Investment, Trade and Industry, through the Malaysia External Trade Development Corporation, remains committed to enhancing exports by intensifying promotional efforts in high-growth emerging markets.

“Our strategic trade promotion plans have shown encouraging progress, particularly in developing economies across Africa, the Middle East, South Asia, and Latin America,” he said.

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