Malaysia's trade minister said the U.S.-Malaysia Agreement on Reciprocal Trade is "no longer applicable" following the U.S. Supreme Court's Feb. 20 ruling striking down the International Emergency Economic Powers Act tariff mechanism central to the deal, Nikkei Asia reported on March 18. However, neither side has produced a formal written notice terminating the agreement, leaving its legal status unclear.

The United States and Malaysia signed the agreement in October 2025, though it quickly drew domestic criticism in Malaysia for being rushed, asymmetrical and potentially infringing on national sovereignty via the "poison pill" clause that allowed Washington to terminate the deal if Malaysia entered trade or economic arrangements deemed to undermine U.S. interests, such as with China.