Malaysia welcomes the US’ overnight decision to pause the sweeping tariff increase, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said on Thursday.

However, the policy volatility created “significant challenges” for Asean economies, he said. Malaysia is now assessing the implications while working with Asean to mitigate disruptions, boost regional economic resilience, and advocate for “balanced and predictable” trade relations, he added.

“These latest developments will certainly be among the topics of discussion at the Asean Economic Ministers’ Meeting that I will be chairing this morning,” he said in a post on his official LinkedIn account.

The remarks come after US President Donald Trump said he would pause the planned increase in reciprocal tariffs on non-retaliating countries while raising duties on China to 125% for refusing to negotiate.

“I have authorised a 90-day pause, and a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately,” Trump said in a social media post. He did not spell out which countries would receive the tariff relief.

Malaysia will continue to be an open, reliable trading and investment partner to all nations, including China and the US, Zafrul said. “We remain committed to open communication and finding mutually beneficial solutions to the trade issue with America,” he added.

Zafrul also reiterated that Malaysia will continue with trade diversification and expanding to new markets as well as deepening existing ones as a hedge against the current uncertainties. “We will also intensify our economic reform agenda to ensure Malaysia’s competitiveness,” he said.

• The Edge Malaysia