Malaysia Warns of Tariff Risks Amid BRICS Currency Moves

Malaysia cautioned against the U.S. imposing tariffs on BRICS countries, warning it could disrupt the global semiconductor supply chain. This comes as BRICS considers ditching the dollar for a new currency. Malaysia is keen to join BRICS but is yet to be accepted officially.

Malaysia has raised concerns over the potential repercussions of U.S. tariffs on BRICS nations, specifically regarding semiconductor supply chains. The move by the incoming Trump administration targets BRICS countries creating or using alternatives to the U.S. dollar, a decision Malaysia warns could lead to global repercussions.

The nation has applied to join the BRICS bloc, which seeks to challenge Western economic dominance. However, it is yet to be formally included. Trade Minister Tengku Zafrul Aziz emphasized Malaysia's economic ties with the U.S., its third-largest trade partner and a key investor in Malaysia's semiconductor industry.

While discussions among BRICS members about moving away from traditional trade currencies, such as the U.S. dollar, continue, no official de-dollarisation decision has been made. Russia recently commented that forced dollar transactions by the U.S. could inadvertently bolster BRICS' shift towards national currencies.

(With inputs from agencies.)