The US has imposed a 24% reciprocal tariff on Malaysian imports, reduced from an earlier proposed 47% tied to trade imbalances. Key sectors—steel, aluminum, automobiles, and semiconductors—remain exempt. Malaysia has opted for diplomacy over retaliation, though growth projections have been revised downward. Azril Rosli, Economist at Maybank Investment Bank, shares his perspective on the long-term economic and global implications of this approach.

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