Msia hit with 25% tariffs, up from 24%
The rate, which was stated in a letter posted on US president Donald Trump's Truth Social, is 1% more than the 24% imposed previously snd paused for 90 days.
In a letter addressed to the King, Trump described the rate as 'far less' than what is needed to eliminate the country's trade deficit with Malaysia.
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Malaysia Sun
23 minutes ago
- Malaysia Sun
Trump Says New Tariff Deadline Not 100 Percent Firm
Trump sent letters to trading partners including key US allies Japan and South Korea, announcing that duties he had suspended in April would snap back even more steeply in three weeks, AFP reported. Tokyo and Seoul would be hit with 25 percent tariffs on their goods, he wrote. Countries including Indonesia, Bangladesh, Thailand, South Africa and Malaysia were slapped with duties ranging from 25 percent to 40 percent. But in a move that will cause fresh uncertainty in a global economy already unsettled by his tariffs, the 79-year-old once again left the countries room to negotiate a deal. I would say firm, but not 100 percent firm, Trump told reporters at a dinner with visiting Israeli regime prime minister Benjamin Netanyahu when asked if August 1 deadline was firm. Pressed on whether the letters were his final offer, Trump replied: I would say final but if they call with a different offer, and I like it, then well do it. The US president had unveiled sweeping tariffs on imports on what he called Liberation Day on April 2, including a baseline 10 percent tariff on all countries. But he quickly suspended all tariffs above 10 percent for 90 days following turmoil in the markets. They were due to kick back in on Wednesday and Trump sent the letters in advance of that deadline. Trumps near-identically worded letters to Japanese and South Korean leaders said he would impose 25 percent tariffs as their trading relationships with Washington were unfortunately, far from Reciprocal. He warned of further escalation if there was retaliation against the levies. But Trump on Monday also signed an order formally extending the Wednesday deadline, postponing it to August 1. The new August date effectively marks a further delay and Trumps latest comments threaten to compound the uncertainty over when the deadline really is. According to letters posted to Trumps Truth Social platform, products from Indonesia will face a 32 percent tariff, while the level for Bangladesh is 35 percent and Thailand, 36 percent. Most countries receiving letters so far had duties similar or unchanged from rates threatened in April, although some like Laos and Cambodia saw notably lower levels. The Trump administration is under pressure to show results after promising 90 deals in 90 days. So far only two firm deals have emerged, with Britain and Vietnam, plus an agreement to dial back super-high tit-for-tat tariffs with China. Japans Prime Minister Shigeru Ishiba said at a cabinet meeting Monday that the announcement of the 25 percent tariffs is genuinely regrettable, local media reported. South Koreas National Security Adviser Wi Sung-lac meanwhile met with his US counterpart Marco Rubio in Washington, expressing hope that a bilateral summit could soon be held to achieve mutually beneficial outcomes across key pending issues. Asked why Trump opted to start with Japan and South Korea, White House Press Secretary Karoline Leavitt said: Its the presidents prerogative, and those are the countries he chose. Thailands acting Prime Minister Phumtham Wechayachai said Tuesday he wanted a better deal than the 36 percent tariff Trump threatened to impose, adding: The most important thing is that we maintain good relations with the US. Malaysia said it was committed to continuing engagement with the US toward a balanced, mutually beneficial, and comprehensive trade agreement, its trade ministry said in a statement, after Washington imposed a 25 percent tariff on the Southeast Asian nation. US Treasury Secretary Scott Bessent said Monday that there would be more deals coming up: We are going to have several announcements in the next 48 hours. Trump has also threatened an extra 10 percent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of Anti-American policies after they slammed his duties at a summit. But partners are still rushing to avert Trumps tariffs altogether. The European Commission said EU chief Ursula von der Leyen had a good exchange with Trump on trade when the pair spoke Sunday.
Malaysia Sun
26 minutes ago
- Malaysia Sun
Malaysia calls U.S. 25 pct tariff disruptive to business, supply chains
Xinhua 08 Jul 2025, 13:15 GMT+10 KUALA LUMPUR, July 8 (Xinhua) -- The imposition of a tariff rate of 25 percent on Malaysian exports to the United States is potentially disruptive to business operations, supply chains, and investment flows that benefit both countries, Malaysia's Investment, Trade and Industry Ministry said on Tuesday. Malaysia is however still committed to negotiations to reach a fair and sustainable outcome for both parties, it said in a statement following a letter by U.S. President Donald Trump addressed to Malaysian King Sultan Ibrahim Sultan Iskandar. "Malaysia views unilateral measures as potentially disruptive to business operations, supply chains, and investment flows that benefit both countries," it said. "Malaysia strongly believes that together, we can find mutually acceptable solutions that safeguard the interests of both our countries and our peoples, while ensuring that bilateral trade and investment remain a positive force for sustainable economic development," it added. The tariff rate is scheduled to be imposed from Aug. 1, 2025.
The Sun
2 hours ago
- The Sun
Act fast to adapt to 25% US tariff, Malaysian SMEs told
PETALING JAYA: Malaysia's small and medium enterprises must act fast to adapt to the new 25% US tariff on Malaysian exports or risk facing severe disruptions to their operations, cash flow and long-term competitiveness, economists warn. Universiti Teknologi Mara (UiTM) Department of Economics and Financial Studies senior lecturer Dr Mohamad Idham Md Razak said the tariff will significantly raise the cost of doing business for Malaysian exporters targeting the United States – which is one of Malaysia's largest trading partners. 'Export volumes may decline, resulting in lower revenue and possible cash flow problems, particularly for SMEs,' he said. 'Businesses need to rethink their strategies quickly. Those who are too reliant on the US will be the most vulnerable.' He urged the government to provide immediate relief in the form of tax deferrals, subsidies or low-interest loans, while encouraging market diversification and improving export support for small firms. 'In the short term, they need help absorbing the cost increase. In the long run, we need to build resilience through diversification and higher-value products.' Taylor's University research cluster lead for innovative management practices Prof Dr Poon Wai Ching echoed this view, stressing that SMEs should use Malaysia's existing trade frameworks to explore alternative markets in Asia, the Middle East, and Africa. 'SMEs must map their supply chains, improve cost efficiency, and open dialogue with US clients to better understand product demand,' she said. 'But ultimately, Malaysia's small businesses must upgrade their product value, branding and innovation to move beyond low-cost export models.' Poon also urged policymakers to increase funding for export promotion agencies such as Malaysia External Trade Development Corporation (Matrade) and ensure SMEs are supported in expanding internationally. Universiti Putra Malaysia Putra Business School Assoc Prof Dr Ida Md Yasin said while larger firms are generally more equipped to weather global shifts, SMEs must be agile and innovative to survive. 'I'm not so worried about the big companies – they are usually good with the latest technology. But SMEs need to back up, especially when entering new markets,' she said. 'They must come up with innovative products and productive processes to compete globally.' Drawing an analogy, Ida said: 'A big company is like a large ship – it takes time to manoeuvre. 'But an SME can pivot faster, if its leadership is ready to act. That speed is what will determine survival in this new trade environment.' The warning comes after US President Donald Trump announced that Malaysian exports to the US will face a 25% tariff – which had been under a 90-day pause – starting Aug 1, up from 24% previously. In a letter addressed to Prime Minister Datuk Seri Anwar Ibrahim and posted on Trump's Truth Social platform, the US president described the tariff as 'far less than what is actually needed' to correct the US trade deficit with Malaysia. 'Malaysia's current trade policies have made our trading relationship largely one-sided and non-reciprocal,' Trump said, warning that any retaliation such as raising tariffs on US imports would trigger an additional 25% tariff. He suggested that Malaysian companies could avoid the tariffs by relocating or setting up manufacturing operations in the US, offering to fast-track necessary approvals.
