KUALA LUMPUR (Reuters) – Malaysia mentioned on Thursday any try by the incoming Trump administration to impose tariffs on BRICS nations for making an attempt to create a brand new foreign money or use options to the greenback may trigger world semiconductor provide chain disruptions.
The BRIC grouping of main rising economies initially included Brazil, Russia, India and China, and has since expanded to absorb different nations.
Malaysia has utilized to be a part of the bloc, which goals to problem a world order dominated by Western economies, however has not but been formally accepted as a member.
Commerce minister Tengku Zafrul Aziz mentioned Malaysia was intently monitoring developments after U.S. President-elect Donald Trump mentioned BRICS members would face 100% tariffs until they dedicated to not creating a brand new foreign money or supporting one other foreign money that may substitute the USA greenback.
Tengku Zafrul famous the USA was Malaysia’s third-biggest commerce accomplice and U.S. corporations have been the primary traders in its semiconductor sector. Malaysia is a serious hub which accounts for about 13% of worldwide chip testing and packaging.
“As such, any transfer to impose a 100% tariff will solely hurt each events that are relying on one another for efforts to stop disruptions within the world provide chain,” he mentioned in a parliamentary reply.
He added that whereas BRICS nations have mentioned lowering reliance on conventional commerce currencies such because the U.S. greenback, there was no official resolution made on de-dollarisation efforts.
The grouping doesn’t have a typical foreign money, however long-running discussions on the topic have gained some momentum after the West imposed sanctions on Russia over the struggle in Ukraine.
On Monday, Russia mentioned any U.S. try and compel nations to make use of the greenback would backfire, and solely strengthen efforts amongst nations to change to nationwide currencies in commerce.
