Malaysia commits to fair trade deal with US amid Trump’s new 25pc tariffs
A 3D-printed miniature model of US President Donald Trump, the US glag and word "Tariffs" are seen in this illustration taken, April 2, 2025. — Reuters pic
Tuesday, 08 Jul 2025 10:22 AM MYT
KUALA LUMPUR, July 8 — Malaysia has pledged to continue engaging the United States in pursuit of a fair and balanced trade agreement following the surprise announcement of a 25 per cent tariff on Malaysian goods.
The Ministry of Investment, Trade and Industry (Miti) said it took note of the US decision and emphasised the importance of maintaining constructive relations.
Washington’s move, announced by President Donald Trump in a letter to His Majesty Sultan Ibrahim, the King of Malaysia, will take effect from August 1 and applies to all Malaysian exports entering the US.
Trump cited “Tariff, and Non Tariff, Policies and Trade Barriers” as the reason behind the action, which he described as a response to persistent trade imbalances.
Malaysia said it valued the longstanding economic partnership with the US and believed that open and fair trade supported growth and jobs in both countries.
Miti reaffirmed its commitment to good-faith discussions aimed at resolving trade issues and concluding negotiations on mutually beneficial terms.
“These efforts are still ongoing and reflect Malaysia’s willingness to reach a fair and sustainable outcome for both parties,” the ministry said.
The US is Malaysia’s second-largest trading partner and its top export destination, with trade in 2024 rising nearly 30 per cent to RM324.9 billion.
Exports to the US accounted for RM198.7 billion, while Malaysia imported RM126.3 billion in goods from the world’s largest economy.
Miti acknowledged Washington’s concerns but maintained that dialogue remained the best way to resolve differences.
It also cautioned that unilateral actions could disrupt business operations, supply chains and investment flows.
Miti then called for solutions that protect both nations’ interests and ensure continued economic development.
The ministry said it would continue to clarify the scope of the announced tariffs with US counterparts and seek a timely resolution.
The Malaysian government concluded by saying it would take “all necessary steps” to protect local businesses, workers and consumers from the new measures.
Trump’s letter had left open the possibility of further tariffs should Malaysia increase its own trade barriers.
He said Malaysia could avoid tariffs if its companies relocated production to the US, describing the American market as “the Number One Market in the World, by far.”
If it were up to the sentiments of the majority of Malaysians, there would be a major economic boycott of the hated Wankees by Malaysians - by Malays and Chinese, for different reasons,
ReplyDeleteMalays because of Israeli actions, and Chinese because of support for China.
but you cannot make government policy based only on sentiments.
what about u?
ReplyDeleteSwaying with head wind to keep yr moneyed relevancy!
And DSAI is happily enjoying Brazilian hospitality...
ReplyDeleteBoth need each other? Just wondering...
ReplyDeletehttps://www.businesstimes.com.sg/international/sia-and-malaysia-airlines-tie-gets-nod-singapores-competition-body
SIA and Malaysia Airlines’ tie-up gets nod from Singapore’s competition body
Republic gives conditional nod for cooperation on routes between Singapore and Malaysia, though the deal is still to be approved by the latter’s regulators
Derryn Wong
Published Mon, Jul 7, 2025 · 07:02 PM
[SINGAPORE] The Competition and Consumer Commission of Singapore (CCCS) has granted conditional approval for commercial cooperation between Singapore Airlines (SIA) and Malaysia Airlines, the regulator said on Monday (Jul 7).
The joint venture will see the two airlines working together on scheduling, pricing, sales and marketing, including expanded codesharing of flights, among other things, on routes between Singapore and Malaysia.