Malaysia draws 'red line' in US tariff negotiations

The government has set a firm red line in ongoing tariff negotiations with the United States to safeguard the country's sovereignty and independence, said Prime Minister's senior political secretary Datuk Seri Shamsul Iskandar Md Akin.

He said while Malaysia is open to discussions to reduce tariffs and enhance trade ties, it would not compromise on demands deemed unreasonable or unrelated to trade.

"This has been clearly stated by the Prime Minister on numerous occasions that there is a red line. We enter into negotiations to ensure that we can reduce tariffs, but we also want to ensure that the sovereignty and independence of the country are not compromised by demands that we consider unreasonable," he said during the Analisis Madani programme on TV Al-Hijrah.

He said while the US had always promoted free trade, he noted that its current president, Donald Trump, had taken a stance on imposing tariffs to curb open trade.

"If Trump attends the meetings with Asean, we will welcome him as a guest and as the President of the United States, but this should not disrupt the ongoing negotiations.

"What's important is that the Prime Minister has laid down a clear framework. There are matters we can negotiate, and there are issues that are entirely non-negotiable. That is the kind of leadership the Prime Minister is demonstrating," he said.

Shamsul also recounted a recent meeting between Prime Minister Datuk Seri Anwar Ibrahim and US Secretary of State Marco Rubio, where Malaysia's position was communicated respectfully yet firmly.

"To me, it is clear that they also understand Malaysia is firm on certain matters. We are open to negotiations, but we remain firm on other matters.

"This was conveyed respectfully by our Prime Minister to Rubio, and he also conveyed the same sentiment. So, we see a very conducive environment for both countries to proceed with the negotiations," he said.

When asked about Malaysia's growing diplomatic outreach and its implications for the economy, Shamsul said the country is actively expanding its global trade partnerships beyond traditional economic superpowers.

"I had the opportunity to accompany the Prime Minister on his visit to the European Union. We know that within the EU, one of the most important trade items is palm oil, along with several other goods. In this context, we can see there is genuine interest from the EU to discuss trade relations with Malaysia. In the past, such talks were long delayed.

"Recently in the UK, just last year, the Prime Minister signed an agreement between Malaysia and the United Kingdom which, in terms of trade relations, tariffs and others, offers strong support to our local businesses," he said.

He added that similar engagements are also taking place with BRICS nations and key economies such as China, Russia, and countries in the Gulf Cooperation Council (GCC).

"These are developments that compel us to open our eyes. Over the past two and a half years, Malaysia has risen on the international stage, and this undoubtedly helps us manage the economy better.

"Ultimately, what the people want is for the government to deliver," he said.