PETALING JAYA: The United States has reduced its reciprocal tariff rate on Malaysian goods to 19%, down from the previously imposed 25% under Executive Order 14257.
The revised rate, announced through a new presidential order issued on July 31, reflects improved trade and security engagement between both countries, marking a step forward in bilateral economic ties.
The decision follows months of negotiations and diplomatic efforts aimed at addressing the United States’ concerns over trade imbalances and national security risks posed by certain import dependencies.
The order, signed by President Donald Trump, underscores the US administration’s continued push for trade partners to better align with its economic and national security priorities.
Malaysia was among the trading partners identified in Annex I of the new executive order as having made “meaningful trade and security commitments” with the US, paving the way for tariff adjustments.
The initial 25% ad valorem tariff, imposed in April under the Trump administration’s broader effort to rectify persistent trade deficits, had raised alarm among Malaysian exporters, particularly in the electronics, rubber, and palm oil sectors.
Industry players had warned that the steep duties would undercut Malaysia’s competitiveness and strain longstanding supply chain relationships.
The revised 19% rate, while still significant, is seen as a positive signal that Malaysia’s proactive diplomatic stance and willingness to cooperate on strategic concerns have paid off.
However, the order cautions that the U.S. will continue monitoring compliance through its Commerce Department and Trade
