Malaysia is at risk of a 25% tariff on its goods unless it secures an agreement with the US by 1 August.
Malaysia’s Investment, Trade, and Industry Minister Tengku Zafrul Aziz stated that Malaysia is negotiating with the US to secure the lowest possible tariff on its exports, aiming for a rate below 20%, according to a Bloomberg report on Tuesday, 22 July 2025.
However, Tengku Zafrul has denied these reports that Malaysia is targeting a 20% tariff and emphasised the goal of achieving a lower rate.
Malaysia is currently facing a 25% tariff and must reach a deal by the 1 August deadline to avoid this rate. Other Southeast Asian nations, such as Vietnam, the Philippines, and Indonesia, have secured tariffs of 20% and 19%.
On 2 April 2025, Trump signed an executive order imposing a 10% baseline tariff on imports from all countries, including Malaysia.
