Whether the reciprocal tariffs on Malaysia remain at 24% after the 90-day pause is uncertain. However, what is certain is that businesses must accept new policies and reversals of policies as the new normal, until Mr. Trump achieves the goal behind the initiation of the tariffs, whatever it may be. Just this week, US President Donald Trump described the reprieve on semiconductors and tech devices as “temporary”, until the US is capable of producing the same items locally.
We addressed the impact of the tariff war on Malaysia and how businesses can respond in our previous article here. As policies continue to fluctuate in the tit-for-tat between the US and China, formulating short-term plans to deal with the tariffs is key.
In this article, we propose clauses in trade agreements which ought to be reviewed in order to navigate the uncertainties of the tariff war.
