KUALA LUMPUR (Reuters) – Malaysia mentioned on Thursday any try by the incoming Trump administration to impose tariffs on BRICS international locations for making an attempt to create a brand new foreign money or use alternate 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 international locations.
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 except they dedicated to not creating a brand new foreign money or supporting one other foreign money that may change the USA greenback.
Tengku Zafrul famous the USA was Malaysia’s third-biggest commerce accomplice and U.S. companies have been the primary buyers 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 forestall disruptions within the world provide chain,” he mentioned in a parliamentary reply.
He added that whereas BRICS international locations have mentioned decreasing 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 standard foreign money, however long-running discussions on the topic have gained some momentum after the West imposed sanctions on Russia over the conflict in Ukraine.
On Monday, Russia mentioned any U.S. try to compel international locations to make use of the greenback would backfire, and solely strengthen efforts amongst international locations to change to nationwide currencies in commerce.