Anwar says 'no rush' to quit trade deal, as Trump warns countries after US court's tariff ruling

Prime Minister Anwar Ibrahim has refused to withdraw from the controversial Agreement on Reciprocal Trade (ART), which he signed with Washington last October, despite the US Supreme Court's recent decision that President Donald Trump's tariff regime was illegal.

It comes as Trump warns countries against backing away from trade deals signed with the US, while threatening them with higher tariffs if they do so.

Questioned in the Dewan Rakyat, Anwar said he preferred to take a wait-and-see approach, unlike several other countries, including the European Union and India, which have either paused or deferred plans to finalise their agreements.

Anwar said the final decision rests with the US Congress despite the ruling by the country's highest court, adding that he would not "rush" into a decision.

Pasir Gudang MP Hassan Karim then reminded Anwar of the concept of separation of powers in the US, saying the Supreme Court ruling made it clear that Trump's move to impose tariffs worldwide is illegal.

"In Malaysia, we have contract law. Under Malaysian contract law enacted by this Parliament, it states that when an agreement is not legally valid, it is considered inherently invalid," said the PKR MP, one of the most vocal critics of the trade deal, who has described it as an "act of surrender" for committing Malaysia to making concessions worth RM1 trillion to the US.

Hassan challenged Anwar and his government to terminate the agreement to save the country.

In response, Anwar said the government would not rush, repeating his argument that the US court ruling was still not final.

"Why should we rush? Just because of the US Supreme Court ruling three days ago, must we decide today according to the Supreme Court decision? I disagree," he said.

"Whatever decision we make today, we can make a lot of noise, it sounds impressive. But what is the risk to the country's economy?"

DAP adviser Lim Guan Eng then stood up to praise China's response to the US tariffs, saying Beijing has "stood up to the bully".

"Moving forward, will we not sign any agreements with the US due to the uncertainty of the current situation?

"Will Malaysia take an approach where we will not be bullied, pressured, or squeezed by the US's unreasonable tactics?"

Anwar said the Supreme Court's tariff ruling mainly addressed concerns of US domestic businesses, adding that Malaysian companies were not affected.

Subject of 300 police reports

In a 6-3 majority decision on Friday, the US Supreme Court ruled that Trump violated federal law when he invoked emergency powers to unilaterally impose sweeping tariffs across the globe.

Trump has since lashed out at the Supreme Court judges and again invoked the same emergency powers to introduce a 15% tariff globally.

The case revolves around import taxes that Trump unveiled last year on goods from countries around the world.

He then offered to revise the tariff rates if the affected countries agreed to sign heavily skewed trade deals in Washington's favour, similar to the one Anwar signed.

Anwar has strongly defended the agreement as a way to persuade Washington to reduce Trump’s trade tariffs from the 25% announced last year to 19% in exchange for various concessions by Malaysia.

Details of the agreement only emerged to the Malaysian public after the White House published them on its official website, hours after Anwar and Trump signed the agreement in Kuala Lumpur on the sidelines of the Asean Summit on Oct 26.

Critics have described the agreement as unprecedented, with one local economist calling it “a stunning retreat” that surrenders Malaysia’s trade autonomy “in exchange for meagre concessions”.

They say it is replete with clauses forcing Malaysia to align itself with American geopolitical interests, in addition to heavily skewed conditions in favour of the US economy.

The agreement has also been the subject of more than 300 police reports nationwide, including one filed by veteran leader Dr Mahathir Mohamad on Dec 2, in which he urged  authorities to investigate Anwar and those involved in negotiating the agreement for economic sabotage and undermining the country’s sovereignty.

Among those outraged is former attorney-general Tommy Thomas, who has urged Putrajaya to exit the trade agreement.

Thomas had earlier slammed those involved in negotiating the deal – from the Prime Minister’s Office to the Attorney-General’s Chambers.

“The US handed them their draft. And it was signed lamely by Anwar, who had Trump’s pen to show for it, and a ride in Trump’s car,” he had said, referring to Trump’s gift of a White House pen to Anwar shortly after signing the agreement.