Malaysia Engages in Talks with US Over 25% Retaliatory Tariffs on Exports

KUALA LUMPUR, 9 July 2025 (Voice of Malaysia)— Prime Minister Datuk Seri Anwar Ibrahim announced today that Malaysia has initiated negotiations with the United States following Washington’s decision to impose a 25 percent retaliatory tariff on Malaysian exports.

Speaking to reporters after officiating the 58th ASEAN Foreign Ministers’ Meeting (AMM) at the Kuala Lumpur Convention Centre, Anwar confirmed that a Malaysian delegation has already been dispatched to engage with US counterparts ahead of the final tariff decision expected in August.

“We have sent a team to negotiate and explain that our country is a trading nation. Any negative impact on the Malaysian economy will also affect the region,” said Anwar.

He emphasized that while Malaysia values its relationship with the US, it will continue to assert its status as a trading nation and advocate for fair treatment.

“Of course, we must maintain our relationship with the US, but we will also maintain our stance. We will ask that the tariff rate be reconsidered,” he added.

Anwar, who also serves as finance minister, revealed that he plans to personally raise the tariff issue during his upcoming meeting with US Secretary of State Marco Rubio, who is visiting Malaysia later this week.

Rubio’s visit marks his first official trip to Asia since assuming office earlier this year. He is scheduled to attend several high-level regional and bilateral engagements, including meetings tied to ASEAN.

The diplomatic engagement follows recent media reports confirming that the United States has decided to raise tariffs to 25 percent on all Malaysian exports, a move widely viewed as part of a broader trade enforcement push by Washington.

Analysts have expressed concern that such a tariff could significantly disrupt Malaysia’s export-driven economy, potentially straining regional supply chains and investor confidence.

Malaysia has urged Washington to consider the interconnected nature of Southeast Asian economies and the risks such actions pose not just to bilateral ties but to the wider economic architecture of the region.

Malaysia’s leadership maintains that constructive engagement and diplomacy remain the best avenues to resolve the dispute and hopes that upcoming meetings will pave the way for a more balanced outcome.

“We will continue to negotiate in good faith, but we expect our economic position as a trading nation to be respected,” Anwar concluded.