Former minister Tengku Zafrul defends proactive Malaysia-US ART deal, rejecting fears of double tariffs on trade

PETALING JAYA: Former Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz has defended the government’s approach in signing Agreement on Reciprocal Trade (ART) with the United States, rejecting claims that Malaysia would face tariffs “almost twice” as high as other countries.

In a Facebook post, Tengku Zafrul took aim at former Economy Minister Datuk Seri Rafizi Ramli, urging him to “stop spinning the narrative”.

Rafizi had claimed that Malaysia could end up facing tariffs nearly twice as high as those previously imposed after the US court ruling, blaming it on what he described as the government’s “haste” in signing the ART with Washington.

“What exactly is this ‘double tariff’ we’re supposedly paying?” he said, adding that the US Supreme Court’s move to strike down the tariffs meant that the 19% tariff imposed on Malaysia would no longer stand.

Tengku Zafrul said the concept behind the ART agreement was straightforward, likening it to travel insurance.

“Before travelling, people often think nothing will happen. But if you end up hospitalised overseas, the bill can reach tens of thousands of ringgit.

“That’s when you understand why paying for takaful coverage was important.

“ART works the same way. We prepare early,” he said.

He stressed that the government could not afford to wait for court proceedings in the US to conclude before taking action, warning that a delay — especially if a decision had favoured US president Donald Trump — would have left Malaysia scrambling to negotiate.

“In today’s global trade environment, those who move slowly pay a heavy price. That’s why we must act early,” he said.

Zafrul added that Malaysia was not alone in adopting a proactive approach, noting that the European Union, the United Kingdom, Japan, South Korea and Indonesia had also reached understandings with the US to provide certainty to their industries.

“This is not about who talks the loudest. It is about who acts first to protect the nation’s economy,” he said.

He said every trade decision involved jobs and the future of Malaysian industries, and defended the government’s early action as necessary to shield the rakyat from economic fallout.

“Some wait for the storm to arrive and only then talk about how to survive. We chose to put up the umbrella early, so the people don’t have to get drenched before seeking shelter,” he added.

The ART deal was signed last October during the ASEAN summit. However, the deal has since drawn criticism from multiple parties, with some condemning it as a concession that could compromise the nation’s “sovereignty”.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said that the Cabinet will meet this Friday to discuss the ART deal with the US.

Anwar said he has received a briefing on the latest developments concerning the agreement from current Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani, and will review the matter carefully before any final decision is made.

Earlier, Johari said the government is closely monitoring developments and policy changes in the US following the US Supreme Court’s decision to invalidate reciprocal tariffs introduced under the administration of president Donald Trump.

 The Sun Malaysia