[News] Malaysia Warns Trump’s Tariff Threats on BRICS Could Disrupt Semiconductor Supply

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According to a report from Reuters, Malaysia warned on Thursday that any move by the incoming Trump administration to impose high tariffs on BRICS countries for potentially creating a new currency or shifting away from the U.S. dollar could disrupt the global semiconductor supply chain.

The report, quoting Malaysian Trade Minister Tengku Zafrul Aziz, notes that the U.S. is Malaysia’s third-largest trading partner, with U.S. companies being the primary investors in the country’s semiconductor sector.

Notably, Tengku Zafrul Aziz claims that Malaysia plays a key role in the global semiconductor industry, contributing about 13% of worldwide chip testing and packaging, as highlighted in the report.

The report indicates that the BRIC group, originally comprising emerging economies Brazil, Russia, India, and China, has grown to include additional countries. Malaysia has applied to join the bloc, which seeks to challenge the dominance of Western economies in the global order, but it has not yet been formally accepted as a member.

Tengku Zafrul Aziz stated that the country is keeping a close watch on the situation following U.S. President-elect Donald Trump’s warning that BRICS members could face 100% tariffs unless they pledged not to create a new currency or support an alternative to the U.S. dollar, according to the report.

Tengku Zafrul Aziz noted that imposing a 100% tariff would harm both parties, as they are mutually dependent within the global supply chain. According to the report, when asked about the possibility of BRICS developing a new currency, he explained that while BRICS countries have discussed reducing reliance on traditional trade currencies like the U.S. dollar, no official decision has been made regarding the creation of a new currency.

The report mentions that on Monday, Russia stated that any U.S. attempt to force countries to rely on the dollar would result in backlash, further encouraging efforts among nations to adopt national currencies for trade.

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