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US hikes tariff on Malaysia to 25%: Cabinet to meet over next steps

Trump warns of further penalties if Malaysia retaliates; negotiations ongoing until August 1

3:58 PM MYT

 

KUALA LUMPUR — The Cabinet is expected to deliberate on Malaysia’s import tariffs tomorrow, following the United States’ decision to impose a 25 per cent tariff on Malaysian goods earlier today.

Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia still has until August 1 to negotiate with Washington.

“For 90 days, the Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, had been negotiating.

“It appears they’ve given him until August 1 to continue, but they’ve already raised the tariff from 24 to 25 per cent,” Johari told reporters after the groundbreaking ceremony for the Taylor’s International School Kuala Lumpur (TISKL) Campus Transformation Project today.

“We’ll wait. I believe the Cabinet will discuss this matter tomorrow.”

In a letter addressed to Prime Minister Datuk Seri Anwar Ibrahim, US President Donald Trump said Malaysia’s trade practices had made its relationship with the US “largely one-sided and non-reciprocal.”

While Trump expressed willingness to lower the 25 per cent tariff should Malaysia revise its trade policies, he warned that any retaliatory tariff on US goods would trigger an additional 25 per cent tariff.

Johari downplayed concerns that Malaysia’s involvement in BRICS, the bloc of emerging economies, would lead to further trade penalties from the US. He underscored the importance of diversifying export markets.

Trump had earlier said the US would impose an extra 10 per cent tariff on any country aligning itself with BRICS’s so-called “anti-American policies.”

Anwar was among the leaders who attended the 17th BRICS Leaders’ Summit in Brazil on Sunday.

“There are over 190 countries in the world. If one country treats us like this, it doesn’t mean we can’t survive,” Johari said.

“We must look for new markets.”

Johari, who is also the MP for Titiwangsa, added that Malaysia’s total commodity exports to the US amounted to just RM20 billion out of a total RM186 billion last year. — July 8, 2025

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