Malaysia Will Continue Constructive Engagement and Dialogue with The U.S. Towards a Balanced, Mutually Beneficial Trade Agreement Outcome

The Government of Malaysia takes note of the recent announcement by the United States (U.S.) Government regarding the imposition of a reciprocal tariff rate of 25% on Malaysian exports to the U.S., effective 1 August 2025.

Malaysia values its longstanding economic and trade relationship with the United States and recognises the important role of open and fair trade in supporting jobs and growth in both our countries. To that end, Malaysia is committed to continuing engagement with the U.S. towards a balanced, mutually beneficial, and comprehensive trade agreement.

Specifically, MITI will continue discussions with its U.S. counterparts in good faith to address outstanding issues, clarify the scope and impact of the announced tariffs, and pursue avenues for the timely conclusion of our negotiations. 

These efforts are still ongoing and reflect Malaysia’s willingness to reach a fair and sustainable outcome for both parties. While we acknowledge the concerns raised by the U.S. regarding trade imbalances and market access, we believe that constructive engagement and dialogue remain the best path forward.

The U.S. is Malaysia’s second largest trading partner and largest export destination, with total trade in 2024 rising nearly 30% to RM324.9 billion (USD71.4 billion). Exports to the U.S. reached RM198.7 billion (USD43.7 billion), while imports rose to RM126.3 billion (USD27.7 billion). 

Malaysia views unilateral measures as potentially disruptive to business operations, supply chains, and investment flows that benefit both countries. Malaysia strongly believes that together, we can find mutually acceptable solutions that safeguard the interests of both our countries and our peoples, while ensuring that bilateral trade and investment remain a positive force for sustainable economic development. 

The Government of Malaysia remains committed to protecting the interests of Malaysian businesses, workers, and consumers, and will take all necessary steps to mitigate the impact of these new measures. We thank all stakeholders for their continued support and cooperation.