Malaysia said it has no plans to retaliate against a 25 percent tariff imposed by the United States on its exports.
Trade Minister Tengku Zafrul Aziz said on Wednesday that talks with Washington are ongoing and the country is still working toward a trade deal.
Speaking at a summit in Singapore, Tengku Zafrul said he had spoken with the U.S. Trade Representative as recently as Tuesday and that both sides agreed to continue negotiations. He added that the timeline for talks has been extended to August 1, giving more time to finalize the terms.
Malaysia, a major exporter of electronics and semiconductors, was hit with a revised 25 percent tariff, up from the 24 percent rate threatened earlier in April before former President Donald Trump announced a 90-day pause.
Prime Minister Anwar Ibrahim said on Wednesday that he would raise the issue during a meeting with U.S. Secretary of State Marco Rubio, who is in Malaysia this week for ASEAN-related meetings. Anwar said that unilateral tariffs affect the economy and the region, but negotiations are still in progress.
The trade ministry said it is in talks with U.S. officials to resolve pending issues, understand the scope and impact of the tariffs, and find ways to conclude the discussions.
Tengku Zafrul said he remains hopeful, especially in sectors where both sides can benefit. Malaysia and other Southeast Asian countries, which depend heavily on manufacturing and exports, are among those most affected by the tariffs.
