Minister of Investment, Trade and Industry (MITI), Tengku Datuk Seri Zafrul Abdul Aziz is set to lead a trade and investment mission to the United States aimed at convincing policymakers there that the US still dominates its trade relations with Malaysia and the wider Asean region.
Zafrul stressed the importance of engagement, especially given the deep integration of Malaysian exports such as semiconductors in the technology supply chain in the United States.
He added that the US is Malaysia's most popular export destination with 60% of electrical and electronic products and over 20% of which are semiconductors.
He is certainly concerned if the threat of tariffs or export restrictions on semiconductors has a profound impact on Malaysia's trade.
Last month, US President Donald Trump launched an additional tariff of 25% on imports from Canada and Mexico and an additional 10% on imports from China.
The tariffs on China came into effect on February 4, while those for Canada and Mexico were delayed for a month.
According to Zafrul, Malaysia recorded a trade value of RM73 billion with the US in 2024.
If we look at it in principle, the Donald Trump administration wants to ensure that the US remains the world's economic giant and Malaysia needs to take cooperative steps to ensure that the Asean region contributes positively to the US economy.
If the negotiations fail, Malaysia needs to discuss how to make US manufacturers continue to trust them.
