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FORMER Minister of Investment, Trade and Industry, Tengku Zafrul Abdul Aziz, has dismissed allegations that Malaysia was paying tariffs nearly twice as high as other countries to the United States, calling the claims “not accurate.”
He was responding to criticism from former Minister of Economy, Datuk Seri Rafizi Ramli, regarding the Malaysia-United States Reciprocal Trade Agreement (ART), signed on October 26, 2025, during the 47th ASEAN Summit.
Tengku Zafrul clarified that the previous 19 per cent tariff levied on Malaysia ceased to apply following a ruling by the US Supreme Court last Saturday.
“What is this about paying double tariffs? When the US Supreme Court cancels the tariff, that means the 19 per cent previously imposed on Malaysia… no longer applies,” he stated in a post on social media platform X.
The MIDA chairman defended Malaysia’s decision to finalise the ART agreement with the United States in October 2025, framing it as a precautionary measure amid a volatile global trading environment.
He likened the approach to taking out travel insurance before going abroad.
“People often think nothing will happen. But when you end up in hospital overseas and the bill reaches tens of thousands of ringgit, that’s when you realise why insurance is important. We provide an umbrella before it rains,” he said.
Tengku Zafrul added that Malaysia opted to act promptly rather than wait for the conclusion of legal proceedings in the US, warning that delays could force the country into less favourable negotiations.
“In today’s global trade, those who move slowly pay a heavy price. A proactive approach provides certainty to local industries and protects the livelihoods of our people,” he explained.
He also noted that Malaysia is not alone in taking such early action.
The European Union, United Kingdom, Japan, South Korea, and, more recently, neighbouring Indonesia have all reached understandings with Washington.
“This is not about who talks the loudest. It is about who acts first to safeguard the national economy,” Tengku Zafrul added, underscoring the strategic and protective rationale behind Malaysia’s trade approach. - February 23, 2026
