KUALA LUMPUR, April 3- Malaysia will use the Trade and Investment Framework Agreement (TIFA) to gain reciprocal trade benefits following the 10 percent tariff increase and the imposition of reciprocal tariffs by the United States (US) on the country's exports.

The Ministry of Investment, Trade and Industry (MITI) in a statement today stressed its commitment in protecting the country's economic interests by strengthening trade relations with the US and expanding export markets to high-growth regions.

"To mitigate the impact of these tariffs, Malaysia is expanding its export markets by prioritizing high-growth regions and leveraging existing free trade agreements (FTAs) including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

"Malaysia will also foster new cooperation within ASEAN and enhance the resilience of Malaysia's supply chain by accelerating the implementation of key industrial policies such as the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR)," the statement said.

MITI is engaging with US authorities to find solutions that are in line with the spirit of free and fair trade, while continuing the Technology Protection Agreement with the US to boost cooperation in the semiconductor, aerospace and digital economy sectors.

The National Geoeconomic Command Centre (NGCC) chaired by Prime Minister Datuk Seri Anwar Ibrahim will assess the impact of the tariffs and devise mitigation strategies to ensure that the Malaysian economy remains competitive.

At the ASEAN level, the first meeting of the ASEAN Geoeconomic Task Force established during the ASEAN Economic Ministers (AEM) Retreat last February is expected to begin soon.

According to the US Bureau of Economic Analysis, Malaysia is ranked 15th on the US list with a trade surplus of US$24.8 billion in 2024 (US$1=RM4.45).

"Despite the trade deficit in goods, the US has a trade surplus in services with Malaysia, reflecting the strength of the bilateral economic relationship that supports jobs and economic growth for both countries.

"It is important to stress that the trade deficit with the US is also due to the fact that many US firms have been operating in Malaysia for decades due to Malaysia's strong industrial ecosystem, especially in the electrical and electronics sectors," the statement said.

MITI also stressed that the tariff hike by US President Donald Trump poses a major challenge to the dynamics of global trade.

"While respecting the country's decision, Malaysia is confident of a constructive engagement for a mutually beneficial economic relationship," the statement said.

MITI is also engaging with affected industries and reviewing support programmes to help businesses adjust.

"MITI remains committed to dialogue and cooperation to resolve trade disputes and promote shared prosperity. Malaysia faces these challenges with a strong and prepared position.

"Our economic fundamentals remain strong. In the near future, while the external environment may be challenging, our diverse markets and products, coupled with strong demand for produce, will provide some buffer," the statement said.

In addition, domestic demand, the country's main growth driver, remains robust and MITI believes the Malaysian economy will continue to be resilient despite these challenges, according to MITI.