Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. — Reuters
KUALA LUMPUR: The United States’ decision to cut tariffs on Malaysian exports to 19% from 25% is a significant achievement of Malaysia’s thorough and methodical negotiating process, according to the Ministry of Investment, Trade and Industry (MITI).
“This decision by the United States reflects the strong and enduring economic ties between our two nations. It is also a testament to Malaysia’s credibility as a reliable trade and investment partner.
“We thank our counterparts in the US, especially the US Trade Representative’s Office and the Department of Commerce, for their constructive cooperation and support throughout the negotiation process,” MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement.
Most importantly, he noted that Malaysia stood firm on key ‘red line’ items and secured the 19% tariff rate without compromising its sovereign right to implement policies supporting socio-economic stability and growth.
"This positive outcome follows sustained engagement between both governments through various bilateral platforms and reflects the high degree of Malaysia–US complementarity in trade and investment for over 60 years."
The Malaysia–US tariff negotiations, which began on May 6, officially concluded on July 31, 2025.
In managing the impact of the 19% tariff, MITI will continue to work closely with relevant ministries and agencies to explore ways to mitigate the effects on Malaysia’s exports.
It will also encourage exporters to fully utilise Malaysia’s 18 Free Trade Agreements (FTAs) to diversify and expand their markets.
At the same time, MITI will continue with its industrial reform initiatives outlined under key national policies such as the New Industrial Master Plan 2030, the Green Investment Strategy, and the National Semiconductor Strategy.
These efforts aim to support Malaysian companies in transforming their operations through greater efficiency, automation, and productivity.
It will also explore ways the government can continue supporting Malaysian businesses, especially small and medium enterprises (SMEs), in adjusting to the new ‘baseline’ tariff rate.
“MITI will continue to work closely with stakeholders to maximise the opportunities from this development, including the strong momentum in approved investments, driven by ongoing infrastructure projects, a consistent realisation rate of over 85% for approved investments, as well as catalytic national development initiatives.
“We remain committed to defending Malaysia’s trade interests while fostering mutually beneficial partnerships with key economies, including the United States. Malaysia will also continue to pursue its industrial reform and strategic trade diversification initiatives to support the nation’s growth,” Tengku Zafrul said.
