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Malaysia optimistic of cutting Trump’s 25% tariff threat to under 20%
Trade Minister Zafrul Aziz is hopeful for a deal by August 1, but Kuala Lumpur is resisting US demands on EV tax breaks and ownership limits
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Malaysia is seeking to lower US tariffs threatened by President Donald Trump to less than 20 per cent and is optimistic of reaching a deal ahead of the August 1 deadline, according to Investment, Trade and Industry Minister Zafrul Aziz.
Prime Minister Anwar Ibrahim will speak with Trump “when we complete the negotiations,” Zafrul told Bloomberg. The US president has threatened a 25 per cent levy – separate from sectoral tariffs – unless the Southeast Asian nation reaches an agreement with his administration.
“The direction is to get to as low as possible,” Zafrul told reporters. “I think we can get to a number which we feel is fair for both parties.”
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Malaysia isn’t ready to close negotiations yet as it is still finalising details with the US, Zafrul said.
The government is seeking to lower tariffs to about 20 per cent, but is reluctant to meet certain demands around electric vehicles and foreign ownership, Bloomberg reported this week, citing people familiar with the matter.
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So far, Malaysia has made progress addressing US concerns over the smuggling of high-performance semiconductors, but has resisted Washington’s demands for an extension of tax breaks on American electric vehicles, a reduction of foreign shareholding limits in the politically-sensitive power and financial sectors, and a cut in subsidies for local fishermen – a major vote bank, the people said.
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