KUALA LUMPUR, August 1 — The United States has officially revised its tariff rate on Malaysian exports to 19%, down from the previously announced 25%, following a directive issued by President Donald Trump under Executive Order 14257. The move, which takes effect seven days from July 31, is part of Washington’s broader strategy to recalibrate trade relationships under its Reciprocal Tariff framework.
Malaysia now joins a group of Southeast Asian nations — including Indonesia, Thailand, and the Philippines — that are subject to the same 19% rate, while Vietnam faces a slightly higher 20%. In contrast, countries like Laos and Myanmar are hit with steep 40% duties, reflecting the US administration’s firmer stance on countries it sees as non-compliant or prone to tariff circumvention.
Trump justified the tariffs as necessary to address long-standing trade deficits that pose a “national security threat.” The latest order also includes provisions for real-time adjustments based on trade negotiations and imposes strict penalties — including a 40% duty — for transshipped goods meant to bypass tariffs.
Malaysian officials had previously indicated hopes for a reduced rate. Prime Minister Anwar Ibrahim hinted at revisions during the 13th Malaysia Plan announcement, while Trade Minister Tengku Zafrul Aziz stressed Malaysia’s ongoing efforts to secure more favorable trade terms with Washington.
