KUALA LUMPUR (April 3): The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has called on the government to speed up negotiations for key trade agreements, like those with the European Union and the Gulf Cooperation Council, in response to the US' decision to impose reciprocal tariffs of 24% on Malaysian exports.

The chambers, in a statement on Thursday, also suggested that the government consider initiating free trade agreement negotiations with the US itself as a means of softening the tariffs' impact.

This is in addition to leveraging existing bilateral and multilateral trade agreements such as the Regional Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the China-Asean Free Trade Agreement, to expand trade.

Datuk Ng Yih Pyng, president of the ACCCIM that represents over 110,000 businesses nationwide, also described the reciprocal tariffs as "unnecessary and unreasonable", saying they will impact domestic businesses and exporters and hurt Malaysia-US ties.

"We question how the United States Trade Representative derived that Malaysia currently has imposed an average tariff of 47% charged on the US goods, including currency manipulation and trade barriers. Malaysia was removed from the US Treasury department monitoring list for currency manipulation as of November 2024," ACCCIM said.

"We are concerned that the tariff actions and retaliation among major economies could spark a global trade war that can disrupt supply chains, slow global economic growth, and lead to increased costs for consumers and businesses," it added.

Calling for a more collaborative approach to address trade imbalance, one that emphasises engagement and reasonable solutions through consultation and joint efforts, ACCCIM said it will continue to work with the government in developing strategies to mitigate the impact of the tariffs.

Meanwhile, it said "the challenges are daunting for our businesses", and they are seeking financial support and alternative suppliers, while expanding into markets beyond the US and encouraging domestic trade and production.