JAKARTA - Experts have asked Malaysia to be more careful in concluding a reciprocal trade agreement or Agreement on Reciprocal Trade (ART) with the United States (US) following the US Supreme Court (SC) on Friday, February 20, canceling US President Donald Trump's reciprocal tariff policy.
The expert in international relations at the International Islamic University of Malaysia, Associate Professor Dr. Mohd Yazid Zul Kepli said, Malaysia must take a measured approach by observing the situation and not acting rashly.
"Malaysia must recognize the US Supreme Court ruling and treat it as a signal that US tariff policies can change quickly under President Donald Trump," he said as quoted by Bernama, Wednesday, February 25.
"Malaysia must also temporarily suspend the completion of ART enforcement measures while seeking clear written assurances from the United States on what tariff authorities will actually apply in the future and how Malaysia's market access will be protected," he continued.
He then suggested that Malaysia maintain good relations with Washington while implementing trade security measures.
"At the same time, Malaysia must propose a technical review mechanism or additional letter so that the commitment remains in place even if the US tariff changes again. This country must also coordinate messages with ASEAN partners and focus on ensuring predictability for exporters, rather than on US domestic politics," said Yazid.
Yazid explained that the ratification of the ART while the US tariff policy was unstable could be interpreted in various ways.
"If Malaysia ratifies or fully implements the ART while the US tariff base that triggered the deal is being overturned or overhauled by US courts and new tariff authorities, critics may see it as a country that 'locks in' commitments to a volatile US policy environment," he said.
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