Malaysia Vows Continued Engagement with US on Fair Trade Deal Amid Tariff Hike
July 8 (voice of Malaysia)— Malaysia remains committed to working closely with the United States to secure a balanced, comprehensive, and mutually beneficial trade agreement, the Ministry of Investment, Trade and Industry (MITI) said in a statement today.
This comes in response to Washington’s recent announcement that a 25% tariff will be imposed on Malaysian goods starting August 1—a 1% increase from the previously paused 24% rate. The hike was disclosed in a letter shared by US President Donald Trump via his social media platform, Truth Social.
Miti emphasized that Malaysia will continue to engage in good-faith discussions with US counterparts to address unresolved issues, clarify the implications of the new tariffs, and work towards the timely conclusion of negotiations.
“These efforts are ongoing and reflect Malaysia’s willingness to reach a fair and sustainable outcome for both parties,” the ministry said.
While acknowledging US concerns about trade imbalances and market access, Malaysia underscored that constructive dialogue remains the best path forward. Miti also highlighted the strong economic ties between the two nations, noting that the US is Malaysia’s second-largest trading partner and its top export destination.
In 2024, total bilateral trade surged nearly 30% to RM324.9 billion (US$71.4 billion). Of this, Malaysian exports to the US accounted for RM198.7 billion (US$43.7 billion), while imports stood at RM126.3 billion (US$27.7 billion).
“Malaysia views unilateral measures as potentially disruptive to business operations, supply chains, and investment flows that benefit both countries,” the ministry said. “We strongly believe that together, we can find mutually acceptable solutions that safeguard the interests of both our countries and our peoples.”
The government reaffirmed its commitment to protecting Malaysian businesses, workers, and consumers, and said it will take all necessary steps to mitigate the impact of the new tariff measures.