Malaysia Becomes First Country To Declare US Trade Deal 'Null And Void' After Supreme Court Tariff Ruling

Malaysia has declared the trade deal with the U.S. invalid after the Supreme Court ruled President Donald Trump‘s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) illegal in February.

Johari told reporters that if tariffs were being justified based on a trade surplus, the authorities should clearly specify the industry involved and not impose blanket tariffs.

Regarding the new review launched by the U.S. under Section 301 last week, the Trade Minister said key Malaysian export sectors that could be affected include electrical and electronics, oil and gas, plantation commodities such as palm oil, gloves, and other rubber-based products. Johari emphasized that Malaysia must ensure its exporters comply with labor and environmental standards to avoid potential disruptions.

White House did not immediately respond to Benzinga‘s request for comments.

Uncertainty Looms Over Malaysia Trade Deal

Notably, Trump had threatened to retaliate with "much higher" tariffs against any nation that attempts to use the recent US Supreme Court ruling to dismantle existing trade agreements.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor