The following is a statement by the Ministry of Investment, Trade and Industry (Miti), reproduced in full.

Following the US Liberation Day’s reciprocal tariffs announced on April 3, 2025, the Madani government stands firm with the view that reciprocal tariffs do not serve the principles of free and fair trade stipulated under the World Trade Organization, of which 164 countries, including the US, is a member. The government also refutes the claim by the US authorities that Malaysia has imposed 47% tariff on US imports into Malaysia.

In the spirit of maintaining positive and progressive relations with all trading partners, the Madani government will continue to engage with the US to find an amicable and fair solution to the reciprocal tariff issue. During this trying period, the government will continue to prioritise Malaysia’s interests, for the well-being of our people, businesses and exporters.

The economic impact of the latest US tariff measures is still being assessed. While our earlier projections were based on a cautious outlook, the scope and severity of the tariffs have exceeded even our most conservative assumptions. As such, the 2025 GDP growth forecast of 4.5%–5.5% is currently under review. The precise impact is expected to be significant and will be clearer once more information is received on the implementation timeline, tariff rates, product coverage (including exemptions), and the outcome of trade negotiations. The speed and scale of retaliatory actions by other economies will also influence the final outcome.

The Madani government does not foresee a recession or a fundamental slowdown. Economic growth projection remains forthcoming, underpinned by resilient household spending, strong domestic investment, healthy tourism receipts, and the continued implementation of national masterplans. Our sound economic fundamentals will enable us to weather this challenge from a position of strength and preparedness.

The Madani government today also discussed various key measures to weather the tariff storm, including strengthening our supply chain, as well as diversifying our trade and investment interests. Strategic high-level engagement with the US will continue, leveraging on the Malaysia-US Trade & Investment Framework Agreement (TIFA). Miti and relevant ministries will continue to engage with the industry and exporters for all of us to weather through this testing period based on a whole-of-nation approach, and with a view to support impacted industry sectors mitigate the impact of the tariffs.

At the Asean level, in Malaysia’s capacity as Chair of Asean for 2025, under the Asean Economic Community (AEC) Pillar, YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry of Malaysia, will chair a Special Asean Economic Ministers’ Meeting on April 10, 2025. The meeting is expected to discuss the broader implications of the US tariff measures on regional trade and investment flows; macroeconomic stability; and Asean’s coordinated response to uphold the region’s economic interests and long-standing commitment to an open, fair, and rulesbased trading system. Subsequently, the Asean leaders will meet to discuss the Asean member states’ way forward, and to address and mitigate potential disruptions to regional trade, supply chain networks, and cross-border investments. This is to ensure that Asean continues to be a stable, competitive, and attractive hub for global trade and investment.

Ministry of Investment, Trade and Industry

April 4, 2025