Malaysia Warns of Impact from U.S. Tariffs on BRICS

Malaysia has expressed concerns regarding potential U.S. tariffs on BRICS nations, warning that such actions could disrupt global semiconductor supply chains. The incoming Trump administration has threatened 100% tariffs on BRICS countries that attempt to establish an alternative currency to the U.S. dollar. Malaysia, which has applied for BRICS membership but is not yet officially part of the bloc, relies heavily on the U.S. as its third-largest trade partner and significant investor in its semiconductor sector. Trade Minister Tengku Zafrul Aziz emphasized that the proposed tariffs would adversely affect both Malaysia and the U.S., given their economic interdependence. While BRICS members are discussing reducing reliance on the dollar, no official decision has been made on de-dollarisation efforts. Meanwhile, Russia has suggested that U.S. attempts to enforce dollar transactions could backfire, further motivating countries to shift towards national currencies in trade.