The US government has reduced the reciprocal tariff imposed on Malaysia to 19%.
The US previously imposed a 25% tariff on Malaysia effective Aug 1, a rate which president Donald Trump described as “far less” than what was needed to eliminate the country’s trade deficit with Malaysia.
The rate was also higher than the 24% initially imposed on certain Malaysian exports to the US and placed on a 90-day pause ending yesterday.
Prime Minister Anwar Ibrahim had hinted at a new rate when tabling the 13th Malaysia Plan yesterday.
Earlier today, AFP reported that Trump‘s administration had imposed higher tariffs on dozens of countries in his latest bid to reshape global trade in favour of US businesses.
The executive order signed by Trump set out tariffs on imports ranging as high as 41% on Syria and 30% on South Africa.
Canadian imports meanwhile will face a tariff of 35%, an increase from the previous 25%.
Last week, investment, trade and industry minister Tengku Zafrul Aziz said Malaysia was aiming for the lowest possible tariff rate on its exports to the US, in dismissing a Bloomberg report quoting government sources as saying that Malaysia was targeting 20%.
Zafrul also said details of the negotiations would be revealed once talks are completed, when asked if Malaysia would be offering specific concessions to the US.
