Kuala lumpur: The United States has imposed a reduced tariff of 19 percent on Malaysian imports, effective August 1, 2025. The revised reciprocal rate marks a decrease from the initially scheduled 25 percent.
According to BERNAMA News Agency, a statement published on the White House website on July 31 outlines that the tariff changes will affect goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 am Eastern Daylight Time, seven days after the date of the order.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 new rate will not apply to goods in transit on the final mode of transport before this time, provided they reach their destination and are processed for consumption before 12:01 am Eastern Daylight Time on October 5, 2025.
The White House statement clarified that these goods would not be subject to the new additional duty but would remain under the ad valorem duties previously imposed in Executive Order 14257, as amended. Among ASEAN member countries, Myanmar and Laos face the highest tariff rate at 40 percent each, followed by Brunei at 25 percent, Vietnam at 20 percent, while Malaysia, Cambodia, the Philippines, Thailand, and Indonesia are each subject to 19 percent. Singapore is subject to a base tariff of 10 percent with no reciprocal tariff.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Malaysia's Finance Minister, announced that he had a phone conversation with US President Donald Trump at 6:50 am to discuss the tariff issue within the context of free trade principles. He noted that ongoing negotiations are taking place between Malaysia's Investment, Trade and Industry Ministry (MITI) and both the US Trade Representative and the Secretary of Commerce.
Earlier, on July 7, Washington had announced a 25 percent tariff on all Malaysian imports, separate from sectoral tariffs, effective August 1, 2025, which was one percentage point higher than previously announced in April. Trump indicated there would be no tariff if Malaysian companies chose to build or manufacture their products within the US.
Malaysia has been in negotiations with Washington since April to reduce the 24 percent tariff imposed earlier, with the most recent discussions held on June 18. MITI Minister, Tengku Datuk Seri Zafrul Abdul Aziz, traveled 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.