The on-again, off-again Trump tariffs on foreign-made goods are now back on again, as US president Donald Trump will reinstate a 25% tariff on products produced in Malaysia from August 1, Malay Mail has reported. In a letter sent to Yang di-Pertuan Agong Sultan Ibrahim Iskandar – ostensibly billed as an invitation to participate in the “number one market in the world” – the commander in chief said the move is aimed at redressing a trade deficit stemming from Malaysia’s “Tariff, and Non Tariff, Policies and Trade Barriers.”
He added that this so-called “reciprocal tariff” is separate from all sectoral tariffs and will be applied even to goods transhipped (i.e. moved from one ship to another during transit) to evade the said tariff. “There will be no tariff if Malaysia, or companies within your country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally and routinely — in other words, in a matter of weeks,” he said in the letter posted to Truth Social.
Trump added that the current “unsustainable” trade deficit is “a major threat to our economy and, indeed, our national security!” He warned that if Malaysia reciprocates by imposing taxes on US-made goods, the US will further raise the said tariff by the same amount.
“If you wish to open your heretofore closed trading markets to the United States, and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” Trump said. “You will never be disappointed with the United States of America.”
Trump previously announced a base tariff of 10% on all countries in April, along with an additional “reciprocal tariff” on nations with a perceived trade deficit, including a 24% tariff on Malaysia. He then walked back on his decision just a week later, applying the 10% rate across the world (except for China, with which the US is still embroiled in a trade war) for 90 days while negotiations take place. Evidently, those three months are up.
While Malaysia currently does not export cars to the US, it is a global player in the supply of automotive components, particularly semiconductors. Thankfully, semiconductors are currently exempt from the tariff, said Penang chief minister Chow Kon Yeow, whose state’s economy is reliant on exports.
He added, however, that the broader implementation of the tariff “still poses an economic risk,” and that the variations in tariff rates across ASEAN could distort trade dynamics and influence future investment decisions across the region.
“Between January and May 2025, Penang accounted for 55% of Malaysia’s total exports to the US, valued at RM52 billion,” he said. “Electrical machinery and equipment constituted 77% of Penang’s exports to the US, with a large share driven by the semiconductor industry.”
Chow said the Malaysian government urgently needs to continuously engage with its US counterparts to negotiate for a lower tariff rate, adding that Penang “will continue to work closely with the federal government and industry players to safeguard the nation’s economic interest.”
It also goes without saying that the tariff could very well lead to inflation in Malaysia, which will drive up prices of goods, including cars.
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Kita lama sudah ada satu jenis tariff maa…since 1985 when Proton was launched. Now will the government stop protecting our no longer national car?
To me it is futile to nego with Trump. Even Japan that buys F35 and SK which is a strong US ally also kena.
There is no way we will buy F35, M1 Abrams or Apache. Too expensive and does not suit our army. There is no way MAS or Air Asia will transition to 787 from A330. MAG still buy 737 coz the waiting period for A321 is super long and MAS is a 737 operator although if I am MAG really no mood to buy 737 due to Trump.
US trucks are too big for our Malaysian roads. Also no desire to own a Tesla or Ford now.
PMX has failed, time to replace him. When companies fail, CEO gets fired, so we need to fire PMX and replace him. PM Najib was gold buddies with Trump during his earlier presidency. Lets bring him back as PM and he might able to pujuk Trump to withdraw the tariff increase. Anyone but failed PMX. In Trumps words: he is FIRED!
Just one crazy US president imposed additional tax not only on Malaysia but also on many other countries, then PM needs to step down, STUPID
businesses are suffering already. those who traveled to america to negotiate only made things worse and this is not including the 10% brics tariff. what a waste of taxpayers money.
He is insane
Malaysia will shipped all products to singapore and export from there
Lion city broker middleman forwarder will markup additional 20 percentage points therefore defeating purpose.
So, what is the result?
Malaysia should let American cars in with 0 tariff and duties. Ford F150, Mustang, Corvette, Tesla (should be tax free after 2025).
2 weeks ago Anwar said the trade talks between Malaysia and US have been excellent. the increase from 24% to 25% tariff on Malaysia means excellent?
LMAO HAHAHA you still can trust him after all the empty promises he gave the rakyat to vote him remain capati? See his promise above. Tanya dia bila mau bagi.
So their “Made in Malaysia” Hot Wheels no longer costs $1.00 at their Dollar General, Costco, Walmart, Targets?, now we can call it fair.
Kena ignore by brics. Kena sabo by usa. Malaysia friends of nobody.
we have friends la… Palestine is our good friend.
The investment man who went to negotiate is an ex-Banker talking to an ex-Businessman and both are politiking so what do you think will happen.
Anyway the investment man once claim how great is the need for APs to inflate car prices to protect cronyism and to make EVs cars sold here are safe even more powerful than the maker itself maybe he can negotiate that way with US.
All the countries just imposed the same rate to America and see who will suffer the most. DT is trying to prove their are still the big brother when everyone knows China is the boss