Malaysia Commits to Constructive Dialogue with U.S. for Balanced Trade Agreement Amid New Tariff Announcement

8 Julai 2025

KUALA LUMPUR: The Malaysian government has reaffirmed its commitment to fostering a balanced and mutually beneficial trade agreement with the United States following the U.S. announcement of a 25 per cent reciprocal tariff on Malaysian exports, effective 1 August 2025.

The Ministry of Investment, Trade and Industry (MITI) emphasised Malaysia’s dedication to maintaining its strong economic and trade ties with the U.S., which remains Malaysia’s second largest trading partner and primary export destination.

In 2024, bilateral trade surged by nearly 30 per cent to RM324.9 billion (USD71.4 billion), with exports to the U.S. reaching RM198.7 billion (USD43.7 billion) and imports totalling RM126.3 billion (USD27.7 billion).

Acknowledging the U.S. concerns regarding trade imbalances and market access, Malaysia advocates for constructive engagement and dialogue as the most effective approach to resolving these issues.

MITI will continue discussions with U.S. counterparts to clarify the scope and impact of the new tariffs and explore solutions for a timely and fair conclusion to ongoing trade negotiations.

The Malaysian government views unilateral measures, such as the proposed tariffs, as potentially disruptive to business operations, supply chains and investment flows that benefit both nations.

“Malaysia strongly believes that together, we can find mutually acceptable solutions that safeguard the interests of both our countries and our peoples,” MITI stated, highlighting the importance of bilateral trade and investment as a driver of sustainable economic growth.

To mitigate the impact of the new tariffs, the government is committed to protecting the interests of Malaysian businesses, workers and consumers.

MITI expressed gratitude for the continued support and cooperation of all stakeholders as Malaysia works towards a sustainable outcome that strengthens the economic partnership with the U.S.

The Ministry reiterated its resolve to pursue open and fair trade policies that support jobs and growth in both countries, ensuring that bilateral trade remains a positive force for economic development.