Johari Confirms Malaysia-US Trade Deal Nullified After US Court Ruling

Investment, trade and industry minister Johari Ghani has confirmed that the reciprocal trade agreement (ART) signed between Malaysia and the United States has been nullified. He explained that the US Supreme Court’s decision to strike down tariffs imposed by President Donald Trump rendered the deal void, as blanket tariffs without specific industry justification are unconstitutional. Johari stressed that the agreement is not suspended but “null and void.”

Trade Deal Nullified

The deal, signed last October during Trump’s visit to Kuala Lumpur for the Asean summit, had maintained 19% tariffs on Malaysian goods, though some products enjoyed zero tariffs under partner-trade lists. Following the court ruling, Trump announced plans to impose global tariffs of 15%, replacing the scrapped levies.

Johari noted that the US is now relying on Section 122 of its Trade Act 1974, allowing temporary 10% tariffs, and Section 301 investigations into trade practices. Malaysia is among 15 countries under review, with the US expanding probes to 60 nations, citing structural excess capacity and forced labour concerns.

Business News