Trump sets 19% tariff for Malaysian exports ahead of deadline
The US ran a goods trade deficit with Malaysia of US$24.8 billion (S$32.2 billion) in 2024, data from the Office of the US Trade Representative.
KUALA LUMPUR – US President Donald Trump will impose a 19 per cent tariff on exports from Malaysia to the US, a lower rate than the 25 per cent levy he threatened in July.
The figure was set in an executive order that Mr Trump signed on July 31, ahead of an Aug 1 deadline he imposed for countries to negotiate trade frameworks with his administration.
The South-east Asian nation has been attempting to win favour with Mr Trump, including by cracking down on the smuggling of advanced semiconductors through Malaysia and helping to broker a ceasefire between Thailand and Cambodia.
Malaysian Prime Minister Anwar Ibrahim's government
wanted to secure a tariff rate below 20 per cent, which would put it in the same range with neighbouring Vietnam, Indonesia and the Philippines.
Datuk Seri Anwar had previewed the announcement on July 31, when he referenced a telephone conversation with Mr Trump and said the US leader would announce a tariff rate on Aug 1, Malaysian time.
In his address, Mr Anwar also said Mr Trump had thanked Malaysia for its role in helping mediate the recent conflict between Cambodia and Thailand over their shared border.
Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Aziz had said previously that there were several 'red lines' the government would not cross in trade negotiations – such as sacrificing the country's sovereignty or sidelining other trade partners as it sought to close a deal with the US.
The tariffs are set to weigh on the economy, with the central bank this week cutting its growth forecast range to 4 per cent to 4.8 per cent, from 4.5 per cent to 5.5 per cent amid the uncertainty.
Mr Zafrul had earlier warned that the US levies would affect the economy for years to come. At the same time, the Trump administration wants the country to address trade imbalances and non-tariff barriers and to safeguard US technology from being channeled to other parties.
The US ran a goods trade deficit with Malaysia of US$24.8 billion (S$32.2 billion) in 2024, data from the Office of the US Trade Representative. It was also the top foreign investor in Malaysia in 2024. Bloomberg
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
4 minutes ago
- CNA
Asian markets track Wall St rally on Fed rate cut bets
HONG KONG: Stock markets rose on Tuesday (Aug 5) as investors grow increasingly confident the Federal Reserve will cut interest rates next month, despite concerns about the United States economy and Donald Trump's tariffs. The gains tracked a rally on Wall Street, where traders rediscovered their mojo following Friday's sell-off that was fuelled by news that fewer-than-expected American jobs were created in July, while the previous two months' figures were revised down sharply. The reading raised concerns that the world's biggest economy was in worse shape than expected, though it also fanned bets the Fed will slash in September, with markets pricing the chance of a 25-basis-point reduction at about 95 per cent, according to Bloomberg. There is also talk that bank officials could go for twice as much as that. "The narrative flipped fast: soft jobs equals soft Fed, and soft Fed equals risk-on," said Stephen Innes at SPI Asset Management. But he warned that "if cuts are coming because the labour market is slipping from 'cooling' to 'cracking', then we're skating closer to the edge than we care to admit". He added: "That dichotomy - between rate cuts as stimulus and rate cuts as warning flare - is now front and centre. "If the Fed moves proactively to shield markets from the tariff storm and weak labour, the equity rally has legs. But if policymakers are reacting to a sharper downturn that is in full swing, the runway shortens quickly." In early trade, Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta were all in the green. However, while there is a broad expectation that the Fed will cut rates, Lazard chief market strategist Ronald Temple remained sceptical. "I continue to believe the Fed will not reduce rates at all this year, given rising inflation caused by tariffs and a relatively stable unemployment rate," he wrote. "I would align with the majority of the FOMC members who believe it is more appropriate to hold policy constant until there is greater clarity in terms of the effects of tariffs and stricter immigration enforcement on inflation and employment." Traders were keeping an eye on trade talks between Washington and dozens of its trade partners after Trump imposed tariffs of between 10 and 41 per cent on them. Among those to strike a deal is India, which Trump on Monday threatened to hit with "substantially" higher rates over its purchases of Russian oil.
AsiaOne
34 minutes ago
- AsiaOne
Malaysian authorities searching for Singapore driver who filled container with subsidised fuel, Singapore News
Malaysian authorities have launched an investigation into a Singapore-registered car after its driver was spotted filling a tank of subsidised Ron95 petrol at a petrol station in Johor Bahru. The incident occurred at Caltex Nusa Sentral, located in the Iskandar Puteri township, on Sunday (Aug 3) at around 6.30pm, according to a post on the SG Road Vigilante Facebook page. Photos showed a blue Mini Cooper, with a Singapore-registered licence plate, and a driver filling up a plastic container with Ron95 petrol. Ron95 is subsidised petrol that is available for sale only to Malaysian-registered vehicles. Foreign-registered vehicles are prohibited from purchasing Ron95 fuel and are only permitted to purchase Ron97, which is not subsidised. Lilis Saslinda Pornomo, director of the Johor Domestic Trade and Cost of Living Ministry (KPDN), said that the ministry is aware of the incident and has opened an investigation. "A thorough investigation is being conducted to identify the location of the station involved and determine whether there has been a breach of existing regulations," she told the New Straits Times. The ban on the sale of RON95 petrol to foreign-registered vehicles remains in force, said Lilis Saslinda. "If the investigation confirms any offence, appropriate action will be taken against the parties involved, including the petrol station operator if found to be negligent or complicit," she said, reminding petrol station operators to adhere to government guidelines. [[nid:713993]]
Business Times
34 minutes ago
- Business Times
Asia: Markets track Wall Street rally on Fed rate cut bets
[HONG KONG] Stock markets rose on Tuesday as investors grow increasingly confident the Federal Reserve will cut interest rates next month, despite concerns about the US economy and Donald Trump's tariffs. The gains tracked a rally on Wall Street, where traders rediscovered their mojo following Friday's sell-off that was fuelled by news that fewer-than-expected American jobs were created in July, while the previous two months' figures were revised down sharply. The reading raised concerns the world's biggest economy was in worse shape than expected, though it also fanned bets the Fed will slash in September, with markets pricing the chance of a 25-basis-point reduction at about 95 per cent, according to Bloomberg. There is also talk that bank officials could go for twice as much as that. 'The narrative flipped fast: soft jobs equals soft Fed, and soft Fed equals risk-on,' said Stephen Innes at SPI Asset Management. But he warned that 'if cuts are coming because the labour market is slipping from 'cooling' to 'cracking', then we're skating closer to the edge than we care to admit'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added: 'That dichotomy - between rate cuts as stimulus and rate cuts as warning flare - is now front and centre. 'If the Fed moves proactively to shield markets from the tariff storm and weak labour, the equity rally has legs. But if policymakers are reacting to a sharper downturn that is in full swing, the runway shortens quickly.' In early trade, Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta were all in the green. However, while there is a broad expectation that the Fed will cut rates, Lazard chief market strategist Ronald Temple remained sceptical. 'I continue to believe the Fed will not reduce rates at all this year given rising inflation caused by tariffs and a relatively stable unemployment rate,' he wrote. 'I would align with the majority of the FOMC members who believe it is more appropriate to hold policy constant until there is greater clarity in terms of the effects of tariffs and stricter immigration enforcement on inflation and employment.' Traders were keeping an eye on trade talks between Washington and dozens of its trade partners after Trump imposed tariffs of between 10 and 41 per cent on them. Among those to strike a deal is India, which Trump on Monday threatened to hit with 'substantially' higher rates over its purchases of Russian oil. AFP
