US Cuts Tariff On Malaysia To 19 Pct

KUALA LUMPUR, Aug 1 (Bernama) -- The United States (US) has imposed a reduced tariff of 19 per cent on Malaysian imports, effective Aug 1, 2025.

The revised reciprocal rate is lower than the initially scheduled 25 per cent.

According to a statement published on the White House website on July 31, the tariff changes will apply to goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12.01 am Eastern Daylight Time, seven days after the date of the order.

However, the White House said the new rate would not apply to goods that are loaded onto a vessel and already in transit on the final mode of transport before that time, provided they are entered for consumption or withdrawn from warehouse for consumption before 12.01 am Eastern Daylight Time on Oct 5, 2025.

“It shall not be subject to such additional duty and shall instead remain subject to the additional ad valorem duties previously imposed in Executive Order 14257, as amended,” the White House said.

Among ASEAN member countries, Myanmar and Laos face the highest tariff rate at 40 per cent each, followed by Brunei (25 per cent), Vietnam (20 per cent), while Malaysia, Cambodia, the Philippines, Thailand and Indonesia are each subject to 19 per cent. Singapore is subject to a base tariff of 10 per cent with no reciprocal tariff.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, announced that he held a phone conversation with US President Donald Trump at 6.50 am to discuss the tariff issue in the context of the spirit and principle of free trade.

He added that the matter was also the subject of ongoing negotiations between the Investment, Trade and Industry Ministry (MITI) and both the US Trade Representative and the Secretary of Commerce.

On July 7, Washington announced a 25 per cent tariff on all Malaysian imports, separate from sectoral tariffs, effective Aug 1 this year – one percentage point higher than previously announced in April.

Trump said there would be no tariff if Malaysian companies chose to build or manufacture their products within the US.

Malaysia has been engaged in negotiations with Washington since April to reduce the 24 per cent tariff imposed earlier, with the most recent discussions held on June 18.

MITI Minister, Tengku Datuk Seri Zafrul Abdul Aziz of Malaysia, travelled to Washington on June 18 to meet US Trade Representative Jamieson Greer, along with other officials from the US administration and investors, to discuss the tariff issue.

-- BERNAMA