MALAYSIA has reaffirmed its commitment to constructive engagement with the United States following Washington’s decision to introduce a 25 per cent reciprocal tariff on Malaysian exports, effective from 1 August 2025.
In a statement issued on 8 July, the Ministry of Investment, Trade and Industry (MITI) underscored Malaysia’s long-standing economic ties with the US and emphasised the importance of fair and open trade in driving mutual prosperity.
“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,” said MITI.
The ministry confirmed that diplomatic talks with US counterparts are ongoing.
“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.”
Acknowledging American concerns regarding trade imbalances and market access, Malaysia reiterated its preference for diplomatic resolution.
“We believe that constructive engagement and dialogue remain the best path forward.”
The United States remains Malaysia’s second-largest trading partner and its leading export destination. In 2024, bilateral trade rose by nearly 30 per cent to RM324.9 billion (USD71.4 billion), with Malaysian exports accounting for RM198.7 billion (USD43.7 billion) and imports from the US totalling RM126.3 billion (USD27.7 billion).
Putrajaya voiced concern that Washington’s unilateral measures may result in unintended consequences.
“Malaysia views unilateral measures as potentially disruptive to business operations, supply chains, and investment flows that benefit both countries.”
Despite the imposition of tariffs, Malaysia expressed optimism about reaching a mutually acceptable outcome.
“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.”
Concluding the statement, MITI reaffirmed the government’s commitment to supporting local industries and safeguarding national interests.
“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.”
The ministry emphasised that its approach would continue to be rooted in dialogue, diplomacy and economic resilience. - July 8, 2025
