He said the US negotiation team had been in Malaysia since last Sunday to finalise the agreement following the consensus reached between Prime Minister Anwar Ibrahim and US president Donald Trump.

“Both countries have presented their positions diplomatically and systematically to achieve a fair and equitable outcome for both sides.

“We are currently finalising this agreement to ensure that it is balanced and prioritises the interests of our people and local companies,” he said during the Ruang Bicara programme “Empowering the Economy & Tariff Negotiation Strategy” aired on Bernama TV on Tuesday.

He said that throughout the negotiations with the US, the Malaysian government, through his ministry, had consistently prioritised the interests of the people and local businesses, including by upholding red lines such as issues related to Bumiputeras, the halal sector, and procurement.

Tengku Zafrul also expressed concern over several issues that might be raised, including tariff issues involving the semiconductor sector and other sectors under Section 232.

“So far, discussions have only focused on the tariff base,” he said.

Section 232 of the Trade Expansion Act of 1962 allows the US to impose additional tariffs on national security grounds.

On Sept 25, Trump announced that the US would impose a 100% tariff on branded or patented pharmaceutical products unless the companies built their manufacturing facilities in the US.

However, the US has yet to make any decision on the semiconductor sector.