Malaysia issued a warning on Thursday that potential tariffs by the incoming Trump administration on BRICS nations for pursuing a new currency or alternative to the U.S. dollar could severely impact global semiconductor supply chains.
The BRICS bloc, initially formed by Brazil, Russia, India, and China, has since expanded to include other nations. While Malaysia has applied to join the group, it has not yet been formally accepted. The bloc’s aim is to challenge the Western-dominated global economic structure.
Trade Minister Tengku Zafrul Aziz expressed concern over the situation, following U.S. President-elect Donald Trump’s statements about imposing 100% tariffs on BRICS members unless they abandon plans for a new currency or alternatives to the dollar.
Tengku Zafrul stressed the importance of the U.S. as Malaysia’s third-largest trading partner and a key investor in the country’s semiconductor industry. Malaysia is a vital player in the global semiconductor supply chain, handling about 13% of worldwide chip testing and packaging.
