Malaysia Continues Engagement with US Amid Threat of Higher Tariffs

Updated: 08 Jul 2025, 09:33 AM IST

Malaysia responds to US President Trump's threat of higher tariffs and emphasizes continued engagement for a fair and sustainable trade agreement.

Malaysia has stated its commitment to engage with the US following President Trump's threat of imposing higher tariffs unless an agreement is reached. Trump warned Malaysia of a 25% levy, higher than the previously announced 24% in April. Discussions are ongoing to address outstanding issues and clarify the impact of the tariffs. Efforts reflect Malaysia's willingness to achieve a fair outcome for both countries.

The Ministry of Investment, Trade, and Industry confirmed Malaysia's intention to pursue a balanced and mutually beneficial trade agreement with the US. Trump recently unveiled plans for higher tariffs on key trading partners but indicated a willingness for further negotiations.

Malaysia aims to reduce US tariffs below 10% for mutually critical sectors. The US seeks to address trade imbalances, non-tariff barriers, and safeguard its technology. The anticipated US levies are expected to impact the Malaysian economy, prompting forecasters to revise growth estimates.