Malaysia remains committed to pursuing a balanced and mutually beneficial trade agreement with the United States, despite US President Donald Trump’s announcement today of a 25% tariff on Malaysian goods effective August 1.
In a statement, the Ministry of Investment, Trade and Industry (MITI) acknowledged the concerns raised by President Trump regarding trade imbalances and market access. However, it emphasized that unilateral measures such as tariffs are disruptive to business operations, supply chains, and investment flows in both countries.
The government remains fully committed to protecting the interests of Malaysian businesses, workers, and consumers, the ministry said, adding that Putrajaya would take “all necessary steps” to mitigate the impact of the tariff — which now exceeds the previously imposed 24%.
“MITI will continue good-faith discussions with its US counterparts to resolve outstanding matters, clarify the scope and implications of the announced tariff, and seek practical solutions for the timely conclusion of ongoing negotiations,” the statement read.
“We firmly believe that with continued cooperation, both countries can reach mutually acceptable outcomes that safeguard our economic interests and uphold bilateral trade and investment as drivers of sustainable development.”
MITI also underscored Malaysia’s long-standing economic partnership with the United States, noting that total bilateral trade surged nearly 30% in 2024 to RM324.9 billion (US$71.4 billion).
The US remains Malaysia’s second-largest trading partner and top export destination, making continued collaboration critical to job creation, investment, and long-term growth.
In a letter to Prime Minister Anwar Ibrahim, Trump stated that the 25% tariff was “far less” than what was necessary to eliminate the US trade deficit with Malaysia.
He warned that any effort to reroute Malaysian exports through third countries to circumvent the tariff would be met with higher penalty rates.
Trump also cautioned that any retaliatory action by Malaysia — such as raising tariffs on US goods — would trigger an additional 25% duty on Malaysian products.
Malaysia had faced a 24% tariff on certain exports unless a deal was reached before the end of a 90-day pause, which expires today.
