22/02/2026

NATIONAL 2 theSun on Sunday FEB 22, 2026

Trump tariffs ruled illegal by US Supreme Court

Nation committed to open, rules based trading

system: Minister

Top judicial body says president exceeded authority in imposing higher duties on nearly every trading partner last year

provisions, trade investigations or congressional legislation.” He said Malaysia must continue strengthening trade diplomacy, diversifying export markets and enhancing product upgrading to keep exporters competitive amid policy swings in major economies. Idham identified electrical and electronics, semiconductor supply chains, machinery components, rubber products and palm oil derivatives as sectors most vulnerable to new trade measures. “These sectors are deeply integrated into global value chains linked to US demand, meaning any tariff adjustment can quickly affect export volumes and investment decisions.” He added that diversifying trade partners remains critical. “Expanding trade ties within Asean, the Middle East, India and other emerging markets helps reduce risks. “Malaysia’s participation in regional trade agreements and economic corridors already strengthens resilience against policy volatility from any single major trading partner.” On investment sentiment, Idham said uncertainty around US trade measures could prompt investors to adopt a cautious approach, particularly in export-dependent industries. “Malaysia can offset this by maintaining policy clarity, consistent industrial incentives and institutional credibility.

“Stable

macroeconomic

Agreement in 1957. “PM Lawrence and I continued this chapter of history in a meeting that lasted nearly three hours. “We also had the opportunity to tour and receive a briefing on the history and conservation efforts of Seri Negara through the Warisan Kuala Lumpur initiative.” management, transparent regulations and proactive engagement with investors will preserve confidence even amid global trade policy fluctuations.” Malaysia University of Science and Technology Prof Emeritus Dr Barjoyai Bardai said the US still retains mechanisms to maintain tariffs on its trading partners. “We have not yet ratified the ART, and this does not directly impact us at the moment. However, we need to remain cautious about its eventual implementation and emphasise necessary amendments.” Barjoyai suggested including a clause committing the US not to raise tariffs beyond the current 19% rate without at least 180 days of bilateral negotiations. “Without this guarantee, Malaysia remains exposed to shifts in US tariff policy as seen with South Korea and other Asean countries.” He stressed the need for a stronger halal protection clause, provisions safeguarding Bumiputera priorities and public interest obligations as well as a “safe exit” protocol allowing withdrawal from ART without economic penalties. “If Malaysia needs to withdraw, there should be a transition period of 12 to 18 months during which existing US tariff rates are maintained while new negotiations take place.”

PETALING JAYA: Malaysia will remain committed to an open and rules-based trading system, even as uncertainty looms over United States (US) trade measures following a landmark Supreme Court ruling, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. In a statement yesterday, he said the government’s approach is aimed at maintaining a stable and predictable business environment while safeguarding the interests of Malaysian exporters, international investors, businesses operating locally and the domestic workforce. “At the same time, Malaysia will continue to diversify its trade relationships and strengthen regional and multilateral economic cooperation to ensure resilience in an evolving global trade environment. “We will act in Malaysia’s best interests while preserving strong bilateral relations with the US.” Johari was responding to reports that the US Supreme Court had ruled against President Donald Trump’s sweeping global tariffs. He said while Malaysia has signed the Agreement on Reciprocal Trade (ART), the pact has yet to be ratified. “The government is carefully assessing recent legal and policy developments in the US. “Nevertheless, based on statements previously released by the US, we recognise that it retains other legal mechanisms to impose trade measures, including unilateral tariffs, should it choose to do so. “We also note the announcement by President Donald Trump of a temporary 10% tariff measure and we are studying its scope and implications.” Johari said Malaysia is awaiting further clarity on how these measures would be implemented and whether additional adjustments would follow. He said the US remains one of the world’s largest economies, with a GDP of about US$31 trillion (RM121 trillion). “In 2025, total trade between Malaysia and the US reached approximately RM367 billion, of which total exports amounted to RM233 billion. “The US is therefore an important and longstanding trading partner for Malaysia.” On Oct 26, 2025, Malaysia and the US formalised the ART, aimed at deepening bilateral economic cooperation, lowering tariffs on Malaysian exports to the US from 25% to 19% and ensuring continued market access for Malaysian goods. – By Ikhwan Zulkaflee

Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

Agreement on Reciprocal Trade (ART) has yet to be ratified. “However, the decision reduces uncertainty surrounding sudden tariff escalations. It also suggests a more rules-based US trade environment which generally benefits export-oriented economies like Malaysia that depend on predictable market access,” he told theSun. He added that the ruling slightly improves the overall risk outlook for Malaysian exporters, particularly those in electronics, electrical goods and manufacturing sectors. “Exporters in these sectors may view this as supportive for medium-term planning because it lowers the probability of sweeping unilateral tariffs being imposed without legal scrutiny.” Idham said the ruling does not eliminate trade risks entirely. “US trade policy can still shift through other legal channels such as anti-dumping duties or sector-specific safeguards. “The US retains multiple legal mechanisms to impose tariffs or trade remedies, including national security

KUALA LUMPUR: Efforts to strengthen the friendship between Malaysia and Singapore were among the matters discussed during his meeting with Singapore Prime Minister Lawrence Wong on Friday, said Prime Minister Datuk Seri Anwar Ibrahim. In a post on his Facebook page, he said discussions also touched on measures to enhance cooperation in resolving outstanding issues involving the two countries. “I deeply appreciate Prime Minister Lawrence’s visit, PETALING JAYA: The United States (US) Supreme Court’s decision to strike down US President Donald Trump’s sweeping global tariffs has reinforced legal limits on executive trade powers and slightly eased the risk landscape for Malaysian exporters, say economists. Malacca Universiti Teknologi Mara finance lecturer Dr Idham Razak said the ruling underscores that tariff measures must remain anchored in statutory authority. “The ruling is significant because it reinforces legal limits on executive trade powers and signals that tariff actions must remain grounded within statutory authority rather than broad national emergency interpretations. “On Friday, the Supreme Court ruled that Trump had exceeded his authority when he imposed tariffs on nearly every US trading partner last year. Idham said the immediate impact for Malaysia is largely indirect, especially as the

Malaysia, Singapore to boost friendship, bilateral ties

old mansion that had witnessed key moments in history, including the signing of the

prosperity for the people of Malaysia and Singapore.” Anwar described the meeting as particularly meaningful, as it took place at a century

Federation of Malaya Agreement in 1948 and the Independence

Anwar also hosted Wong for the breaking of fast before holding a one on-one discussion over dinner. Wong, who

arrived in Malaysia at 4.05pm, departed last night after concluding his special visit. Singapore is Malaysia’s second largest trading partner, with total trade reaching RM402.35 billion in 2025, an increase of 1.5% from 2024. – Bernama

which reflects the friendship between our two nations and strengthens our personal ties. “May this meeting, together with the blessings of Ramadan, continue to nurture l a s t i n g understanding and

Anwar with Wong at Seri Negara yesterday. – PIC COURTESY OF PRIME MINISTER’S OFFICE