KUALA LUMPUR: The Ministry of Investment, Trade and Industry has reaffirmed Malaysia’s overall competitive position despite new tariff rates imposed by the United States.
MITI stated that the government’s decision to pursue prudent negotiations rather than retaliatory action has produced pragmatic and balanced results.
The United States announced reciprocal tariffs on Malaysia at 19% effective 8 August 2025, reduced from an initial 25%.
Although the reduced tariff rate will still cause some impact, MITI confirmed it would be minimal compared to previous levels.
“The imposition of the tariff is expected to have a direct impact on the demand for Malaysian products in the US market.”
MITI explained that increased tariffs would raise import costs and product prices in the United States market.
US importers might potentially pressure Malaysian exporters to absorb the cost of these reciprocal tariffs.
The ministry provided this written response on the parliament’s website addressing Senator Datuk Mustafa Musa’s query about tariff impacts.
The MADANI Government has implemented mitigation measures through MITI and the Malaysia External Trade Development Corporation.
These measures include conducting roadshows to affected industrial sectors regarding tariff implementation and support opportunities.
MITI and the Malaysian Investment Development Authority have also implemented strategies to encourage investment in high-value sectors.
These strategies aim to contribute to industrial development, ecosystem growth, and local supply chain strengthening. – Bernama