Malaysia to pursue fair trade deal as US imposes 25% tariff on exports
MALAYSIA will continue engaging with the US to reach a fair trade agreement following Washington's announcement of a 25% tariff on Malaysian exports, effective Aug 1.
In a statement today, the Investment, Trade and Industry Ministry (MITI) said discussions with US counterparts are ongoing to address outstanding issues, clarify the scope of the tariffs and seek a fair resolution.
'Malaysia values its longstanding economic and trade relationship with the US and recognises the important role of open and fair trade in supporting jobs and growth in both our countries,' the ministry added.
The 25% tariff is a revision of the 24% reciprocal tariff first announced in April under US President Donald Trump's Liberation Day global tariff initiative.
While acknowledging US concerns over trade imbalances and market access, MITI stressed that unilateral measures could disrupt business operations, supply chains and investment flows that benefit both economies.
'Malaysia strongly believes that together, we can find mutually acceptable solutions that safeguard the interests of both our countries and our peoples,' it added.
The US is currently Malaysia's second-largest trading partner and top export destination. Total trade between the two nations rose nearly 30% in 2024 to US$71.4 billion (RM324.9 billion), with exports to the US amounting to RM198.7 billion and imports at RM126.3 billion.
MITI said the government remains committed to protecting the interests of Malaysian businesses, workers and consumers, and will take all necessary steps to mitigate the impact of the new tariffs.
Earlier, Trump released a batch of letters to about a dozen countries, including Malaysia, inviting them to 'participate in the extraordinary Economy of the United States, the Number One Market in the World, by far.'
The letters were addressed to Prime Minister (PM) Datuk Seri Anwar Ibrahim and His Majesty Sultan Ibrahim, King of Malaysia. Similarly, the letter to Thailand was also addressed to its PM and monarch.
In the nearly identical letters, Trump unveiled the first in a wave of promised letters that threaten higher tariff rates on key trading partners. These include a 25% levy on goods from Japan and South Korea, and signed executive order delaying implementation until Aug 1.
In addition to Malaysia, the US also announced 25% tariffs on Kazakhstan and Tunisia, a 30% levy on South Africa and 40% levy on Laos and Myanmar. Other nations affected include Indonesia (32%), Bangladesh (35%), Thailand and Cambodia (36%), Bosnia (30%) and Serbia (35%).
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