Malaysian Prime Minister Anwar Ibrahim said the country does not expect a recession despite new US tariffs. He confirmed the government will not impose retaliatory tariffs.

The US tariffs, effective Apr. 5, start at 10% and will rise to 24% by Apr. 9, with some exemptions.

Anwar said Malaysia’s economic fundamentals remain strong, supported by household spending, domestic investment, tourism, and national development plans.

He acknowledged the challenges ahead, especially for sectors like textiles, furniture, rubber, and plastics. Semiconductor exports, Malaysia’s top export to the US, are somewhat protected.

Anwar criticized the tariffs as against World Trade Organization (WTO) principles and rejected claims of a 47% Malaysian tariff on US goods.

He said Malaysia will focus on strategic interests, impact analyses, and discussions with stakeholders, including US firms.

The newly established National Geo-economic Command Centre will address the impact. Malaysia also plans to rely on regional and global trade partnerships to cushion the effects.