KUALA LUMPUR, MALAYSIA February 24, 2026— Former Economy Minister Dato’ Seri Rafizi Ramli has urged the government to immediately halt the ratification of the Agreement on Reciprocal Trade (ART) with the United States, claiming the pact is now unnecessary and harmful to Malaysia’s interests following a landmark US Supreme Court ruling.
In a strongly worded post on X yesterday, accompanied by a 3½-minute video explanation, Rafizi directly rebutted recent statements by former Investment, Trade and Industry Minister Datuk Seri Utama Tengku Zafrul Abdul Aziz.
The ART was signed on 26 October 2025 in Kuala Lumpur during the 47th ASEAN Summit. It locked in a 19% reciprocal tariff rate for Malaysian goods entering the US market as a safeguard against higher unilateral tariffs threatened by President Donald Trump.
On 20 February 2026, the US Supreme Court ruled 6-3 that Trump’s sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority. The decision struck down the unilateral retaliatory tariffs imposed on multiple countries.
Zafrul had claimed the court ruling automatically nullified the 19% rate Malaysia had negotiated, meaning Malaysian exporters would now enjoy the same lower tariff applied to non-signatory countries.
Rafizi countered that the court only invalidated Trump’s unilateral IEEPA tariffs — not bilateral agreements already signed by sovereign nations.
He quoted US Trade Representative Jamieson Greer, who stated clearly that the signed agreements “remain in force” and warned signatory countries to comply, distinguishing them from the newly announced general tariff (reported at 15% or lower).
“Yang mahkamah US batal adalah tarif timbal balas, sebahagian besarnya dikenakan secara unilateral oleh Trump kepada negara-negara lain. Mahkamah US tak batalkan perjanjian yang telah dimeterai,” Rafizi wrote in Malay.
He argued that Malaysia now faces a worse position: it would be bound to the higher 19% rate under the ART plus additional commitments that compromise national sovereignty, while non-signatory countries enjoy the new lower 15% tariff with no extra conditions.
“The best path forward is for us not to ratify this agreement so that it lapses automatically,” Rafizi said.
He added that Malaysia is still in the ratification phase and should stop the process immediately.
Rafizi also criticised Zafrul for rushing the deal, saying the former minister was “fortunate” to have close ties with certain quarters, or he might have faced investigation for the haste.
The ART requires parliamentary approval and exchange of ratification instruments before it enters into force under Article 7.2.
Several government MPs, including Rafizi, Wong Chen (Subang), Nik Nazmi Nik Ahmad (Setiawangsa) and Lee Chean Chung (Petaling Jaya), had earlier called for full disclosure of the agreement’s terms and suspension of ratification.
Prime Minister Dato’ Seri Anwar Ibrahim has said the government is seeking written assurances from Washington that Malaysia’s economic sovereignty will not be affected and is studying the latest developments before deciding.
The issue has sparked intense debate on social media, with netizens divided between those praising Rafizi’s detailed analysis and others accusing him of politicising a national trade matter.
As of today, the Ministry of Investment, Trade and Industry (MITI) has not issued a fresh response to Rafizi’s latest statement.
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