Malaysia PM: U.S.-Malaysia trade pact not formally approved yet

Malaysia PM: U.S.-Malaysia trade pact not formally approved yet

Malaysia PM: U.S.-Malaysia Trade Pact Not Formally Approved Yet

The U.S.-Malaysia Agreement on Reciprocal Trade (ART), signed in October 2025 during President Donald Trump’s visit to Kuala Lumpur, has not yet been ratified by the Malaysian government. Prime Minister Anwar Ibrahim confirmed on February 22 that the Investment, Trade and Industry Ministry (Miti) is reviewing the implications of a recent U.S. Supreme Court ruling that invalidated Trump’s unilateral tariff measures, while coordinating with Washington and ASEAN partners to determine next steps according to reports.

Miti Minister Johari Abdul Ghani reiterated that the government is conducting a cost-benefit analysis of the ART to assess its economic and policy implications before making a decision on ratification as reported. "The government remains committed to safeguarding national interests and ensuring that any implementation of the agreement does not affect existing policy directions or Malaysia’s economic security," he stated according to the ministry.

The U.S. Supreme Court’s February 20 ruling, which struck down Trump’s broad tariff authority under the 1977 International Emergency Economic Powers Act (IEEPA), has added uncertainty to the pact’s future. Former Malaysian Trade Minister Tengku Zafrul Abdul Aziz claimed the ruling effectively nullified Malaysia’s obligation to maintain the agreed 19% reciprocal tariff rate, though the validity of this interpretation remains unconfirmed according to claims. Trump has since announced a new 10% tariff on all imports under separate legal authority, complicating the original terms of the ART as reported.

The U.S. government highlights the agreement’s potential to boost American exports, reduce non-tariff barriers, and enhance cooperation on critical minerals and intellectual property according to U.S. officials. Bilateral trade between the two nations reached $94.03 billion in 2025 according to data, underscoring the economic stakes.

Malaysia’s cautious approach reflects broader concerns about aligning with U.S. trade policies amid legal and political shifts. While the ART’s ratification remains pending, the government emphasized its commitment to open, rules-based trade and will await further clarity on U.S. measures before proceeding as stated.

—Article by Ying Xian Wong, Dow Jones Newswires