Jabatan Profesional Muda – JPro

Did Malaysia Really Win in the New U.S. Trade Deal?

Malaysia rolled out the red carpet for Donald Trump. Smiles, ceremonies, and talk of โ€œpeace and prosperity.โ€
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But as the dust settles, we must ask honestly: ๐—ฑ๐—ผ๐—ฒ๐˜€ ๐—ถ๐˜ ๐˜๐—ฟ๐˜‚๐—น๐˜† ๐—ฑ๐—ฒ๐˜€๐—ฒ๐—ฟ๐˜ƒ๐—ฒ ๐—ฐ๐—ฒ๐—น๐—ฒ๐—ฏ๐—ฟ๐—ฎ๐˜๐—ถ๐—ผ๐—ป ๐—ฎ๐—ป๐—ฑ ๐˜„๐—ต๐—ผ ๐˜๐—ฟ๐˜‚๐—น๐˜† ๐—ฏ๐—ฒ๐—ป๐—ฒ๐—ณ๐—ถ๐˜๐˜€?
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Under the new USโ€“Malaysia Reciprocal Trade Agreement, Malaysia agreed to:
โ–ช Eliminate or reduce tariffs to almost all U.S. goods; from cars to medical devices. Effectively opening our market to full competition.
โ–ช โ Exempt U.S. tech giants from our digital service tax.
โ–ช โ Remove export limits on rare earth and critical minerals โ€” resources vital to our nationโ€™s future industries.
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In return, the U.S. merely capped its tariffs of 19% at the same level already extended to other ASEAN countries and offered โ€œinvestment intentionsโ€ that are neither binding nor guaranteed.
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In fact, Malaysia is now committed to purchasing over USD150 billion in American goods, while the promised inflow of U.S. capital stands at only USD70 billion.
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The risk is clear:
With no import tariffs, local manufacturers and SMEs will face unequal competition from cheaper U.S. goods, while Washington insists on a โ€œlevel playing fieldโ€; a phrase that too often benefits those already stronger.
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Economically, we spend more than we gain.
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Strategically, we lose leverage over our own resources and digital policies.
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Diplomatically, we appear grateful for an arrangement that treats us as a buyer, not a partner.
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We welcome trade and cooperation, but not at the expense of sovereignty or fairness.
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And while we understand the demands of diplomacy, it is painful to see warm celebration extended to a leader whose open support for Israelโ€™s genocide against Gaza continues to offend the conscience of the world.
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Malaysia deserves partnerships that strengthen our economy and uphold our dignity.
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๐—ง๐—ต๐—ฒ ๐—พ๐˜‚๐—ฒ๐˜€๐˜๐—ถ๐—ผ๐—ป ๐—ถ๐˜€, ๐—ฑ๐—ถ๐—ฑ ๐˜๐—ต๐—ถ๐˜€ ๐—ฎ๐—ด๐—ฟ๐—ฒ๐—ฒ๐—บ๐—ฒ๐—ป๐˜ ๐—ฎ๐—ฐ๐—ต๐—ถ๐—ฒ๐˜ƒ๐—ฒ ๐—ฒ๐—ถ๐˜๐—ต๐—ฒ๐—ฟ?

Prepared by

Kluster Ekonomi & Kewangan,
Jabatan Profesional Muda (JPro)

27 October 2025