KUALA LUMPUR: Malaysia will closely monitor the implications of the US' proposed 100 percent tariff on BRICS member countries, despite only being a partner nation to the economic bloc.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia will assess whether the announcement by US President-elect Donald Trump could have repercussions beyond BRICS nations.
"We are not a BRICS member. Malaysia, like Indonesia, Thailand, and Vietnam, is a partner country to BRICS. "However, I believe we need to carefully observe the potential announcement that could impact not only BRICS member countries," he said during a press conference at the official ceremony of UK countdown to CPTPP entry-into-force here, today.
In a social media post on Saturday, Trump urged the BRICS nations (Brazil, Russia, India, China, and South Africa) not to create or support a new currency to replace the US dollar, threatening a 100 per cent tariff if they do.This follows Trump's recent proposal to impose significant tariffs on China, Mexico and Canada - countries with which the US has large trade deficits.
Tengku Zafrul said Malaysia remains committed to open trade and collaboration, even amid escalating protectionist measures globally.
"Although there has been talk about the US imposing tariffs on Canada, Mexico, and China, Malaysia remains open to trade."
"We support multilateral platforms like the CPTPP, which play a vital role in enhancing the standard of living, boosting economic growth, and ensuring global stability. "We are pleased with the UK's inclusion in the CPTPP, which signals confidence in multilateral trade as a tool for prosperity," he said.
Meanwhile, Malaysia acting British high commissioner David Wallace said being one of the BRICS members, the UK continues to pursue practical measures to reduce tariffs.
" As some countries are talking about tariffs going up, we are trying to, in practice, bring tariffs down by having the CPTPP membership for the UK and by working within CPTPP with like-minded countries."
"With the UK's participation, the CPTPP now accounts for 15 percent of the global economy, positioning this free trade bloc as a champion of open trade and future liberalisation efforts," he added.