
US hits Malaysia with 25% tariff
PETALING JAYA : The US has imposed a 25% tariff on Malaysia starting Aug 1, a rate which US president Donald Trump described as 'far less' than what is needed to eliminate the country's trade deficit with Malaysia.
The rate is also higher than the 24% initially imposed on certain Malaysian exports to the US, later placed on a 90-day pause that ended today.
In a letter addressed to Prime Minister Anwar Ibrahim, posted on Trump's Truth Social platform, Trump said Malaysia's current trade policies had made its trading relationship with the US largely one-sided and non-reciprocal.
He also said that he was ready to lower the 25% tariff if Malaysia changed its trade policies.
Trump said the tariff would be applied independently of any other sector-specific tariffs already in place, and that any attempt to reroute goods through other countries to avoid higher tariffs would be penalised by the application of the higher rates.
He also warned that any decision by Malaysia to raise tariffs on US goods would result in an additional 25% tariff in response.
'Please understand that these tariffs are necessary to correct the many years of Malaysia's tariff and non-tariff policies and trade barriers, which have caused these unsustainable trade deficits against the US,' he said.
In his letter, Trump also emphasised the continued commitment of the US to its trading relationship with Malaysia, despite its significant trade deficit with the country.
Trump also encouraged greater Malaysian participation in the American economy, which he described as the 'number one market' in the world.
'As you are aware, there will be no tariff if Malaysia, or companies within your country, decide to build or manufacture products within the US,' he said.
'In fact, we will do everything possible to get approvals quickly, professionally, and routinely – in other words, in a matter of weeks,' he said.
Trump issued similar letters to several other countries, including Japan, South Korea, Indonesia, Bangladesh, Thailand, and South Africa.
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