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The US tariff on Malaysian imports has been reduced from 25% to 19%
According to FMT, US President Donald Trump said the new rate is "far less" than what was needed to eliminate the country's trade deficit with Malaysia.
The new rate will apply to Malaysian goods entering the US, unless they are exempt under specific conditions, such as those related to semiconductors.
Trump initially imposed a 24% tariff on Malaysian goods, placing the country in the 11th spot on a table he presented on Liberation Day, 2 April.
The tariff rate was increased by 1% to 25% on 8 July, but Prime Minister Datuk Seri Anwar Ibrahim later stated that Malaysia had a few weeks to negotiate the rate.
Trump initially imposed a 24% tariff on Malaysian goods on 2 April.
Image via AFP via Straits TimesHere are the US tariff rates on our neighbouring countries:
| Country | Previous Tariff Rate | New Tariff Rate |
|---|---|---|
| Cambodia | 49% | 19% |
| Laos | 48% | 40% |
| Vietnam | 46% | 20% |
| Myanmar | 44% | 40% |
| Thailand | 36% | 19% |
| Indonesia | 32% | 19% |
| Brunei | 24% | 25% |
| Malaysia | 24% | 19% |
| Philippines | 17% | 19% |
According to the executive order published on the White House's website, Singapore, a major US trading partner in the region, is notably absent from the list.
The Straits Times reported that the absence implies that the default reciprocal tariff rate is likely to remain at 10%.
Below are a few notable countries and their new US tariff rates:
- Japan: 15%
- South Korea: 15%
- Taiwan: 20%
- India: 25%
- Canada: 35%
- Iraq: 35%
- Switzerland: 39%
- Syria: 41%
Trump has threatened tariff hikes on Mexico and China, but the US' southern neighbour was granted a 90-day extension, and the 12 August deadline for a deal with China is also expected to be extended by three months, reported CBS News.
