United States (US) President Donald Trump had earlier announced a 25% import tariff on Malaysian goods, set to take effect this month.
In a letter to Sultan Ibrahim, Trump stated that the US still wants to work with Malaysia, despite feeling that the relationship was somewhat one-sided, emphasising that the focus moving forward would be on fair trade.
The US has imposed a new tariff on Malaysian goods
In response, Malaysia’s Ministry of Investment, Trade, and Industry (MITI) stated that it will continue discussions with the US in good faith to resolve the remaining issues.
“Malaysia values its long-standing trade relationship with the US and knows how important open and fair trade is for creating jobs and supporting economic growth in both countries. Thatâs why weâre committed to keeping the conversation going and working towards a balanced, win-win trade deal,” MITI explained.
According to a recent update by Harian Metro, the US is now set to impose a lower 19% tariff on Malaysian imports starting today (August 1).
No tariffs if Malaysian products are made in the US
Back on July 7, Washington had announced a 25% tariff on all Malaysian goods heading to the US (separate from sector-specific tariffs), which was 1% higher than what was announced in April.
Malaysia has been in talks with Washington about the tariffs since April, hoping to bring down the earlier 24% rate.
However, no tariffs will apply if Malaysia or Malaysian companies choose to develop or make their products in the US.
What are your thoughts on this? Let us know down in the comments!
