ASIATODAY.ID, KUALA LUMPUR — Malaysia has announced that its reciprocal trade agreement with the United States is no longer valid after the US Supreme Court struck down the tariff policy that formed the basis of the deal.
Malaysia’s Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani said the Agreement on Reciprocal Trade (ART) automatically became void following the court’s decision.
“This is not a suspension. The agreement no longer exists—it is void by law. The United States Supreme Court has ruled that tariffs cannot be imposed without a clear justification,” Johari said, as quoted by Malaysian media outlet The Star on Tuesday, March 17, 2026.
Short-Lived Trump–Anwar Trade Pact
The ART agreement was signed on October 26, 2025, by Malaysian Prime Minister Datuk Seri Anwar Ibrahim and then US President Donald Trump.
The deal aimed to: ensure fairer trade practices, protect Malaysia’s exports and jobs, and stabilize bilateral trade relations between the two countries.
However, its legal foundation collapsed after the US Supreme Court annulled Trump’s reciprocal tariff policy on February 20, 2026.
Court Rules Tariff Policy Illegal
The court ruled that the administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unlawful.
The ruling means Washington must now provide specific and justified grounds for any future tariff measures.
According to Johari, the United States can no longer impose blanket tariffs without identifying the industries involved.
“If the US claims tariffs are necessary due to a trade surplus, it must clearly specify which sectors are responsible,” he said.
Trump Announces New Tariffs
Despite the ruling, Trump later announced a flat 10 percent tariff on imports from all trading partners.
He subsequently signaled plans to increase the temporary tariff to 15 percent, raising fresh concerns about global trade tensions.
The collapse of the Malaysia–US agreement highlights the fragility of international trade arrangements amid shifting legal and political dynamics in Washington. (AT Network)
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