KUALA LUMPUR – Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz has hit back at former prime minister Tun Dr Mahathir Mohamad’s criticism of Malaysia’s recent trade arrangements with the United States, accusing him of making “false allegations” and misrepresenting the deal.
In an Instagram post, Tengku Zafrul rebutted several of Mahathir’s talking points from a statement made yesterday — including the claim that Malaysia would abolish all taxes on 11,000 US products in exchange for Washington reducing tariffs from 25% to 19%.
The minister clarified that only 60.4% of tariff lines will be zero-rated, not 100% as alleged.
“There is a huge difference between 60% and 100%, Tun. 60% is a bit more than half,a not the same as all (100%). Therefore, Tun’s accusation is false,” he said.
Tengku Zafrul also dismissed Mahathir’s claim that Malaysia would supply the US with rare earth elements (REE), stressing that no agreement exists to exclusively supply such materials to Washington. Current policy requires REE to be processed domestically before export.
“Can you share the source to back your accusation, Tun? It is not wrong to criticise, but when it is based on falsehoods, then it is wrong,” he said.
The minister further refuted Mahathir’s remark that Putrajaya seemed “happy” to have struck a deal with former US president Donald Trump.
“This is not about being happy, Tun. It is about taking responsibility to safeguard the livelihoods and incomes of Malaysians.”
Earlier this month, Trump announced a “reciprocal” import tariff of 19% on Malaysian goods — down from the 25% imposed last month — following negotiations between both countries. The new rate aligns Malaysia with regional peers Indonesia, Vietnam and the Philippines, which secured similar tariff levels of 19–20%. — August 8, 2025