US tariff

KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has refuted the United States’s (US) claim that Malaysia has imposed a 47 per cent tariff on US imports into Malaysia.

He said the calculation was based on the simple ratio of the US trade deficit with Malaysia to its total imports from Malaysia in 2024.

Anwar said this claim was used as the basis by the US to impose a retaliatory tariff of 24 per cent on Malaysia, which is a 50 per cent reduction on the 47 per cent tariff that Malaysia is said to have imposed on imports from that country.

“We believe this calculation does not reflect the actual tariff level and is not based on sound economic theory. The fact is that, on average, tariffs imposed on US imports into Malaysia are only 5.6 per cent.

“This was acknowledged by the Office of the United States Trade Representative in the report ‘2025 National Trade Estimate Report on Foreign Trade Barriers of the President of the United States on the Trade Agreements Program’ published on March 31, 2025,” the prime minister said during the Special Parliamentary Meeting on the US tariffs today.

Anwar said that the government takes the US’s imposition of retaliatory tariffs seriously. 

“Therefore, taking into account the importance of the US as Malaysia’s largest export destination and source of foreign investment, the government believes that any challenges to trade relations must be addressed pragmatically and based on national interests, while maintaining good relations with all of Malaysia’s trading partners,” he said. — BERNAMA

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The post PM Anwar: Malaysia does not impose 47% tariff on US imports, only 5.6% on average appeared first on The Malaysian Reserve.

by HIDAYATH HISHAM

MALAYSIA may see its retaliatory tariffs reduced as the United States has agreed to advance discussions on the matter says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Finance Minister said while no final decision has been made, the current discussions with Washington have opened the door for possible adjustments to the 24% reciprocal tariff imposed on Malaysian imports.

“The United States has agreed to engage in further negotiations with Malaysia, and there is a possibility that the reciprocal tariff imposed could be reduced,” he said during a special parliamentary session on the matter this morning.

The 24% tariff, first announced by the US in early April, was deferred for 90 days and replaced with a temporary 10% base rate.

Washington had claimed Malaysia imposed a 47% import duty on American goods — a figure that the government rejected.

“This calculation does not reflect the actual tariff level and is not grounded in sound economic theory,

“In reality, the average tariff imposed on imports from the US is only 5.6%, a figure confirmed by the Office of the United States Trade Representative in its 2025 National Trade Estimate Report on Foreign Trade Barriers, published on 31 March 2025.” he said.

Anwar added that the government would prioritise national interest while preserving Malaysia’s trade relationships with global partners.

The prime minister also mentioned that discussions with the US were still in their early stages and that no binding commitments had been made by either side.

As a safeguard, Malaysia has established the National Geoeconomic Coordination Centre (NGCC) to monitor global trade developments and coordinate responses to future risks.

The government also aims to reduce its reliance on traditional markets by diversifying exports.

Recent growth was recorded in non-traditional destinations, including a 53.6% increase in exports to Egypt, 30.1% to Cambodia, and 29% to Pakistan in 2024.

Additionally, to support small and medium-sized exporters affected by tariff volatility, Anwar announced an additional RM1 billion government guarantee scheme and RM500 million in soft loans through development financial institutions.

Despite global headwinds, Malaysia recorded strong economic performance in 2024 with GDP growth of 5.1% and RM378.5 billion in approved investments — the highest in national history.

Trade with the US amounted to RM325 billion last year, comprising RM199 billion in exports and RM126 billion in imports, resulting in a RM72 billion surplus.

Malaysia’s long-standing trade ties with the US include over RM166 billion in cumulative American investments and RM182.7 billion in government-linked holdings in US capital markets.

Anwar concluded by affirming that Malaysia’s position in the negotiations would be guided by principle, not pressure.

“We do not choose the easy path. We do not give in to pressure. We choose to negotiate based on principle to protect the people’s jobs, future investments, and the nation’s economic sovereignty,” he said

The government has rejected the United States (US) claim that Malaysia has imposed a 47 percent tariff on US imports to Malaysia.

Prime Minister Datuk Seri Anwar Ibrahim said that this was not true, and was also refuted by most other countries.

He said that the total US imports from Malaysia in 2024 must be measured comprehensively and not used as a basis for imposing a 24 percent retaliatory tariff.

“We believe that this calculation does not reflect the actual tariff level and is not based on sound economic theory,” he said at a special briefing session on the US tariff issue at the Dewan Rakyat today.

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The post Discussion on US tariff to continue, might reduced more, says Prime Minister  appeared first on The Malaysian Reserve.

KUALA LUMPUR — The United States (US) government has agreed to further talks with Malaysia on the surprise US reciprocal tariff imposed on imports from the country, said Prime Minister Datuk Seri Anwar Ibrahim (picture).

Although discussions are currently in the early stages, he said, there is a likelihood that the US will reduce the 24 per cent reciprocal tariff imposed on Malaysia.

“It must be reiterated that the process is still in the early stages without any agreement finalised by the two parties. Neither Malaysia nor the US has made any final commitments,” he said during a special meeting in the Dewan Rakyat today.

He also said that all ongoing discussions are subject to a non-disclosure agreement in line with international practices when the issues are of strategic interests and are sensitive.

“If there are policy recommendations that require approval, it will go through a comprehensive review process including at the Cabinet level and, if required, tabling in Parliament,” he added.

On April 24, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz led a delegation to Washington, DC for a high-level meeting with US Secretary of Commerce Howard Lutnick dan US Trade Representative Jamieson Greer to address the tariff issue.

During the meeting, Tengku Zafrul stressed the importance of continuous discussions and reiterated Malaysia’s openness to find constructive solutions in addressing US concerns. — BERNAMA

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The post PM Anwar: US agrees to further talks on tariff imposed on imports from Malaysia appeared first on The Malaysian Reserve.

KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim (picture) is confident that Malaysia’s strong economic fundamentals will enable the country to navigate the global uncertainties following the recent announcement of retaliatory tariffs by the United States (US).

He stressed that structural reforms introduced under the MADANI Economic Framework will strengthen the country’s ability to withstand global economic challenges and stay prepared for future uncertainties

“With a resilient domestic economy and strong confidence, we are not easily swayed by external pressures or overwhelmed by global challenges.

“We have the figures and data that can be managed and used wisely,” he said during a Special Parliamentary Meeting in the Dewan Rakyat today on the US tariffs

Anwar, who is also the Finance Minister, described Malaysia’s macroeconomic performance last year as highly encouraging, with the country recording a gross domestic product growth of 5.1 per cent in 2024 compared to 3.6 per cent in 2023, surpassing the Budget 2024 forecast of between 4.0-5.0 per cent.

“In addition, we have consistently reduced the fiscal deficit — from 5.5 per cent in 2022 to 5.0 per cent in 2023 and subsequently 4.1 per cent in 2024, down to a projected 3.8 per cent for 2025,” he said. — BERNAMA

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