US President Donald Trump has issued letters to leaders of multiple countries, including Malaysia, notifying them of upcoming tariff hikes. In a letter dated July 7 addressed to Malaysian Prime Minister Anwar Ibrahim, the US government announced a 25% tariff on all Malaysian imports effective August 1.
The letter blamed Malaysia for “long-standing and persistent trade deficits caused by tariff and non-tariff barriers,” asserting that the relationship has been far from reciprocal.
“The US will impose a 25% tariff on all Malaysian products entering the country, separate from sectoral tariffs,” it read. Transshipped goods attempting to bypass tariffs will be penalized accordingly.
The US described the 25% rate as moderate compared to the actual imbalance and emphasized the need to restore fair trade.
In a conciliatory gesture, the letter invited Malaysian firms to invest in the US, promising expedited approvals and zero tariffs for locally manufactured products.
The letter also warned against retaliatory measures: “If Malaysia raises its tariffs, the US will add that amount to the existing 25%.”
Despite its tough tone, the letter closed diplomatically, highlighting the importance of the US-Malaysia relationship and encouraging greater trade balance.
CNN reported that similar letters were sent to 14 countries, including Japan, South Korea, Indonesia, Thailand, Myanmar, Laos, Cambodia, and others, with tariff rates up to 40%.
Then later in the day, he posted seven new letters sent to leaders of Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia and Thailand, putting the running total at 14 letters delivered on Monday.
In the letters, Trump said he takes particular issue with the trade deficits the US runs with them, meaning America buys more goods from there compared to the amount that American businesses export to those countries. Trump also said the tariffs would be set in response to other policies that he deems are impeding American goods from being sold abroad.
He encouraged country leaders to manufacture goods in the US to avoid tariffs.
