00:00A former U.S. trade negotiator says Malaysia is unlikely to succeed in completely eliminating the 24% tariff rate imposed by U.S. President Donald Trump.
00:12Stephen Olson, who represented the U.S. in negotiations for two free trade agreements, said Malaysia would have limited leverage in tariff talks,
00:20adding that Trump is unlikely to bat an eye even if Malaysia threatened the U.S. with 500% tariffs.
00:26Olson suggested that Malaysia raise additional pressure points in negotiations such as corporate or geopolitical concerns,
00:34while also highlighting how the U.S. benefits from strong trade and economic ties with Malaysia.
00:39He also said he doesn't see a scenario in which 0% tariffs are within the realm of possibility for Malaysia.
00:46The U.S. has been Malaysia's third largest trading partner since 2015,
00:50with the total trade between the two countries surging 29.9% to RM324.91 billion last year.
00:58Meanwhile, Olson said commitments to buy more U.S. products may appeal to Trump,
01:03who views trade deficits as a sign that the U.S. is losing to other countries.
01:08However, he said Malaysian trade officials would have to assess whether the cost of making additional purchases from the U.S.
01:14would outweigh the benefits of securing reduction or elimination of tariffs.
01:20On Monday, Investment Trade and Industry Minister Tengku Zafral Aziz said Malaysia aims to secure the removal
01:25or significant reduction of tariffs on its goods, with negotiations set to begin Tuesday,
01:31led by Masura Ahmad Mustafa, the Ministry Secretary-General for Trade.
