PETALING JAYA: Continuous engagements with the United States will be conducted following US President Donald Trump’s announcement of a set 10% tariff rate, says the Investment, Trade and Industry Ministry (Miti).
According to the latest announcement, an additional 10% tariff will be imposed on nearly all Malaysian exports, following what the US described as Malaysia's failure to impose and enforce a ban on imports linked to forced labour.
"Once the United States Trade Representative (USTR) determines the rate on excess capacity, Miti will update all relevant stakeholders accordingly.
“Meanwhile, Miti will continue to engage with the United States,” the ministry said.
It added that Malaysia was one of 17 nations hit with the rate, while some other economies were imposed higher rates of 12.5%.
"The USTR took into consideration Malaysia's commitments to implement and enforce laws prohibiting the importation of forced labour goods, as the basis for the tariff rate imposed on Malaysia.
“The 10% tariff will start from 12.01am US time on July 24, 2026, immediately following the expiry of the temporary tariff imposed under Section 122 of the Trade Act 1974,” it said.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia would continue to negotiate with the US over aspects it finds unfavourable regarding the latest tariffs.
"For now, we will accept (the tariffs). Negotiations are being continued by (Investment, Trade and Industry Minister) Datuk Seri Johari Abdul Ghani.
“If we do not receive a satisfactory outcome, we will raise the matter again. At the very least, we are relieved that the tariff is relatively low compared with most other countries," Anwar told reporters after attending a national patriotism programme at the Army Basic Training Centre (Pusasda) in Port Dickson.
The tariff follows a Section 301 investigation launched by the US Trade Representative in March into 60 economies over their forced labour import restrictions.
Other economies subject to the 10% tariff include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
