By DayakDaily Team
KUCHING, Aug 1: The United States government has reduced the reciprocal tariff imposed on Malaysia from 25 per cent to 19 per cent.
According to a report from the New Straits Times (NST), this followed a presidential order issued by the White House on July 31.
The order, signed by President Donald Trump, reflects ongoing efforts by the US administration to pressure trade partners to align more closely with its economic and security policies.
The new rate forms part of broader changes to the US Reciprocal Tariff framework under Executive Order 14257, aimed at addressing what Washington describes as “long-standing trade imbalances and national security concerns”.
“Malaysia is among several trading partners now subject to revised ad valorem duties under the updated tariff schedule, which takes effect seven days from the date of the order. The new rate will apply to Malaysian goods entering the US unless exempted under specific conditions,” reported NST.
In addition to Malaysia, Indonesia, the Philippines, Thailand, and Cambodia also face the 19 per cent tariff rate within Southeast Asia..
Meanwhile, Vietnam faces a slightly higher rate of 20 per cent, followed by Brunei with 25 per cent. In comparison, Laos and Myanmar face 40 per cent each, which possibly reflects Washington’s tougher stance on countries seen as offering minimal engagement or posing circumvention risks.
However, Singapore, which is a major US trading partner in the region, is not included in the latest round of adjustments.
In other Asian economies, India faces a 25 per cent tariff, Taiwan and Sri Lanka each face 20 per cent, and South Korea and Japan face 15 per cent, while China is covered under a separate executive order.
According to NST, the wide variation in tariffs reflects the US administration’s country-specific approach, rewarding what it deems ‘constructive alignment’ on trade and security, while penalising nations considered uncooperative or non-reciprocal.
On July 8, the US announced a 25 per cent tariff on all Malaysian products entering the country starting Aug 1, a move that President Donald Trump described as still “far less than what is needed to eliminate the trade deficit disparity” with Malaysia. — DayakDaily
