“We’re working on a fair deal” – MITI to Continue Talks After US Imposes 25% Tariff on Malaysian Goods

The United States (US) President Donald J. Trump recently announced a 25% import tariff on Malaysian goods, set to take effect on 1 August 2025.

The rate is reportedly 1% higher than initially proposed, with Trump saying the move is aimed at protecting US domestic industries.

“We’re working on a fair deal”

In response, Malaysia’s Ministry of Investment, Trade and Industry (MITI) stated that it will continue discussions with its US counterparts in good faith to address unresolved issues, clarify the scope and impact of the proposed tariffs, and explore paths toward a timely conclusion of ongoing negotiations.

In their statement, the Ministry added that they’re aiming for a fair and lasting outcome for both sides.

“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. That’s why we’re committed to keeping the conversation going and working towards a balanced, win-win trade deal,” the statement said.

“Working together is still the best way forward”

MITI added that talks are still ongoing and show Malaysia’s willingness to work towards a fair and lasting outcome for both sides.

“We understand that the US has concerns about trade imbalances and market access, but we believe open discussions and working together are still the best way forward. The US is Malaysia’s second-largest trading partner and top export destination.”

They also noted that unilateral actions could disrupt business operations, supply chains, and investment flows that benefit both countries.

“Malaysia truly believes that by working together, we can find solutions that work for both sides, protecting the interests of our countries and people, while keeping trade and investment a strong driver of sustainable growth,” they concluded.

“If M’sia hikes tariffs, the US will tack it onto the existing 25%”

In a letter to Prime Minister Datuk Seri Anwar Ibrahim, Trump said the US would continue working with Malaysia despite what he described as an unbalanced relationship, adding that this time, the focus would be on fair and equal trade.

For now, Malaysia won’t face any tariffs, but Trump issued a warning to the Malaysian government.

“If you decide to raise your tariffs for any reason, we’ll simply add that amount to the 25% we’re already charging,” he said.

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Also read: “Recent changes in global trade rules” – Temu & Shein to Hike Prices in Response to Trump’s New Tariffs