Malaysia has secured a slight win on the trade front as the United States reduces its reciprocal tariff on Malaysian exports from 25% to 19%.

The announcement comes after Prime Minister Anwar Ibrahim hinted at a revised rate during the tabling of the 13th Malaysia Plan. The move follows months of negotiation and pressure, as Malaysia pushed back against the steep tariff hike imposed by the US.

US Reduces Tariff on Malaysian Goods to 19%:

• The previous 25% tariff came into effect on August 1.
• It was described by US President Donald Trump as “far less” than what was needed to eliminate the US trade deficit with Malaysia.
• A 24% tariff had initially been imposed on certain Malaysian exports, but it was temporarily paused for 90 days.
• The new 19% tariff is slightly below earlier speculation that Malaysia was aiming for a 20% rate.

Meanwhile, the broader global trade landscape is also seeing big shifts.

• AFP reported that Trump’s administration has imposed steep tariffs on imports from over 30 countries.
  • Syria: up to 41%
  • South Africa: 30%
  • Canada: increased from 25% to 35%

Back home, Investment, Trade and Industry Minister Tengku Zafrul Aziz clarified that Malaysia is still in the midst of negotiations with the US.

He previously dismissed a Bloomberg report suggesting Malaysia was targeting a 20% rate, saying the government was aiming for the lowest possible tariff.

“Details will only be disclosed once the talks are complete,” Zafrul said, in response to questions on whether Malaysia would be offering any concessions to secure a better deal.

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