Malaysia has become the first country to abandon a trade agreement negotiated under Washington's reciprocal tariff strategy, declaring its deal with the United States "null and void" following a Supreme Court ruling that undercut the entire framework.
Trade Minister Johari Abdul Ghani announced the withdrawal on March 15, telling reporters the agreement "is no longer there, it's null and void" after a February 20 U.S. Supreme Court decision struck down reciprocal tariffs imposed under the International Emergency Economic Powers Act.
The move signals a potential unraveling of Washington's trade architecture across the region. Several ASEAN members—including Vietnam, Indonesia, and Bangladesh—negotiated similar deals that now face identical legal uncertainty.
From 47% to Nothing
The collapsed agreement had saved Malaysia from tariffs initially threatened at 47%, negotiated down to 24%, then further reduced to approximately 19%. In exchange, Kuala Lumpur granted deeper market access and policy concessions to American firms.
But the calculus shifted dramatically after the court ruling. Washington imposed a uniform 10% tariff under Section 122 on all trading partners—meaning countries with negotiated deals now receive identical treatment as those without agreements, according to StratNews Global.
Prime Minister Anwar Ibrahim had signed the original agreement with President Donald Trump on October 26, 2025, in Kuala Lumpur, hailing it as a cornerstone of bilateral relations. Five months later, the legal foundation crumbled.




