Malaysia fears tariffs on BRICS will disrupt semiconductor supply chain

Malaysia said it was closely monitoring developments after Mr Trump warned of imposing 100% tariffs on goods from BRICS countries.

Malaysia warns US tariffs on BRICS will disrupt semiconductor supply chain - Illustration photo: REUTERS

On December 5, Malaysia said that any upcoming US government effort to impose tariffs on goods from BRICS countries could disrupt the global semiconductor supply chain.

Earlier on November 30, US President-elect Donald Trump threatened to impose a tax of up to 100% on goods from BRICS countries if the group stopped trading in USD.

The BRICS group of the world's leading emerging economies originally included Brazil (B), Russia (R), India (I), China (C), and South Africa (S).

At the 2023 summit, the BRICS group expanded for the first time in more than a decade, inviting Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) to join.

In an effort to counter the world order dominated by Western economies, Malaysia has applied to join BRICS but has not been approved, Reuters news agency reported.

Malaysian Trade Minister Tengku Zafrul Aziz said Malaysia is closely monitoring developments following Mr Trump's announcement.

Accordingly, Mr. Tengku Zafrul emphasized that the US is Malaysia's third largest trading partner, and US companies are major investors in the country's semiconductor sector.

According to Reuters, Malaysia is a semiconductor hub with about 13% of global chip packaging and testing activities.

"Therefore, any move to impose 100% tariffs will only hurt the two sides that are dependent on each other in their efforts to prevent disruptions to the global supply chain," Tengku Zafrul told the Malaysian Parliament .

In 2022, Russia - which currently holds the rotating presidency of the BRICS group - has floated the idea of introducing a BRICS currency.

By October 2024, Kremlin spokesman Dmitry Peskov stated: "Cooperation within BRICS is not directed against anyone or anything, and is not directed against the US dollar or other currencies."

Source: https://tuoitre.vn/malaysia-lo-viec-ap-thue-voi-brics-se-lam-dut-gay-chuoi-cung-ung-ban-dan-20241205160850967.htm