US CUTS MALAYSIA TARIFF TO 19% FROM 25%.

The United States has officially reduced its tariff on Malaysian exports from 25% to 19%, effective 1 August 2025. This follows successful negotiations between both governments, which concluded on 31 July 2025.

The Ministry of Investment, Trade and Industry (MITI) views this outcome as a significant milestone, achieved without compromising Malaysia’s policy priorities. The revised rate is now aligned with regional peers and reflects the strong Malaysia–US economic partnership.

To manage the new tariff environment, MITI will:

• Support exporters in leveraging 18 Free Trade Agreements (FTAs) for market diversification.

• Continue advancing industrial reform under national strategies such as the New Industrial Master Plan 2030, Green Investment Strategy, and National Semiconductor Strategy.

• Work closely with stakeholders, especially SMEs, to adapt to the new trade landscape.

  
  

MITI also thanked all stakeholders involved in the negotiations, including the Prime Minister’s Office, relevant Ministries and Agencies, and industry representatives.

The US remains Malaysia’s largest export market (RM198.65 billion in 2024) and top source of foreign investments (RM32.82 billion in approved investments).

• Further information is available in the Media Statement:

[FINAL] MITI Press Statement_19 Per Cent Tariff on Malaysia_2025-08-01.pdf

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