KUALA LUMPUR, July 8 – The United States will impose a 25% tariff on all Malaysian products entering its market starting August 1, 2025, according to a letter from President Donald J. Trump to Prime Minister Datuk Seri Anwar Ibrahim. The move, described as necessary to correct “unsustainable trade deficits,” was announced on Trump’s Truth Social platform and follows the expiration of a 90-day pause on previously imposed sectoral tariffs.
In the letter, Trump criticised Malaysia’s “non-reciprocal” trade policies and accused the country of maintaining high tariff and non-tariff barriers that contributed to the persistent deficit. He warned that any increase in Malaysian tariffs on US goods would trigger an equivalent hike on Malaysian exports, with goods rerouted through third countries also subject to higher rates.
While the 25% tariff will be imposed across the board, Trump offered a potential reprieve, stating that the rate could be revised downward if Malaysia reforms its trade practices or opens its markets more broadly to US products. He also urged Malaysian firms to invest in the American economy, promising fast-track approvals for manufacturing projects in the US.
Trump’s letter, also sent to leaders in several other countries, underscores a renewed protectionist stance under his administration. Despite the tough measures, he maintained that the US remains committed to its trade relationship with Malaysia, calling the American economy “the number one market in the world.”
