Malaysia defends Trump trade deal after critics warn it will compromise country's sovereignty

"Malaysia's government has been forced to defend its new trade deal with the US after opposition politicians, analysts and civil society groups warned that the deal was one-sided and could compromise the country's sovereignty. Investment, trade and industry minister Tengku Zafrul Aziz has called the trade deal the best possible outcome for Malaysia. This is the geopolitical reality we face as a freely trading nation engaging with the world's largest economic power, which is also our biggest trading partner, Aziz said."

"Among the critics of the deal is former Malaysian prime minister Mahathir Mohamad a trade nationalist and the country's longest-serving leader who said provisions in the agreement amounted to handing over the country's independence. We agree to buy their airplanes, gas and machines, obey their digital rules, that they have the first bite of the cherry of our rare minerals, open our market on their terms and follow their conditions on who we can do or not do business with, Mahathir, a political rival of prime minister Anwar Ibrahim, said last week."

"But public discourse has centred on an article of the agreement published by the White House, which states Malaysia is required to align itself with the US on matters of economic restrictions or sanctions against a third country. Opposition politician Azmin Ali claimed that the clause would mean that if Washington decides to block imports from China or Russia, Malaysia must do the same, even if it harms our economy."

Malaysia signed a trade deal with the United States that would cut or remove tariffs on some US goods while the United States maintains tariffs on most Malaysian products at 19%, granting zero percent reciprocal tariff rates for a limited list. Investment, trade and industry minister Tengku Zafrul Aziz defended the agreement as the best possible outcome and a geopolitical reality with the US as Malaysia's largest trading partner. Critics including former prime minister Mahathir Mohamad and opposition figures say provisions risk surrendering economic independence. A White House-published clause would require Malaysia to align with US economic restrictions or sanctions, raising concerns about forced alignment.

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