FX.co ★ Malaysia Responds to New U.S. Tariffs

Malaysia has reaffirmed its dedication to maintaining a "balanced" and "mutually beneficial" trade relationship with the United States, even in light of President Trump's announcement of a 25% tariff on Malaysian goods, effective August 1. The Ministry of Investment, Trade, and Industry recognized the concerns raised by Trump regarding trade imbalances and market access but emphasized that unilateral tariffs are "disruptive to business operations, supply chains, and investment" in both nations. The ministry committed to taking "all necessary steps" to safeguard Malaysian businesses and consumers, and noted that Kuala Lumpur would continue engaging with U.S. officials to clarify the details of the tariff and work towards a resolution. In a letter to Prime Minister Anwar Ibrahim, Trump described the 25% tariff as "far less" than what he deemed necessary to eliminate the U.S. trade deficit with Malaysia, cautioning against the rerouting of goods or the implementation of retaliatory tariffs.