Malaysia Resists US Tariff Demands to Protect Core Policies and Economic Sovereignty

Malaysia is negotiating to lower upcoming US tariffs to 20 per cent but is resisting demands that affect key domestic policies. Bloomberg reported progress on AI chip transshipment talks with the Trump administration, but Malaysia refuses to extend special EV tax exemptions for American firms beyond December, fearing similar demands from other countries. Malaysia also rejected US calls to ease foreign ownership limits in finance and energy and to reduce fishing subsidies, which could alienate rural Malay voters. Prime Minister Anwar Ibrahim stressed national policies, including bumiputera affirmative action, will not be compromised. Minister Tengku Zafrul emphasised any deal must protect Malaysia’s economic sovereignty. The US imposed a 25 per cent tariff effective August 1, raising economic stakes.