The United States will impose a 25% tariff on all goods imported from Malaysia beginning August 1, 2025, former US President Donald J. Trump announced in a formal letter to Prime Minister Datuk Seri Anwar Ibrahim.
The letter, posted publicly via Trump’s Truth Social account, stated that this new rate will apply to all Malaysian imports, regardless of sector, and is part of a broader push to reduce the trade deficit between the two countries.
“25% tariff is far less than what is needed”
Trump clarified that the 25% tariff would not apply to Malaysian companies that set up manufacturing operations inside the US, and he promised fast-track approvals for such investments—stating that applications could be approved “in a matter of weeks.”
If Malaysia, or companies within your Country, decide to build or manufacture product within the United States… there will be no tariff,” he wrote.
The letter also warned that Malaysian goods transshipped through third countries to avoid tariffs will still be taxed, and that any retaliatory tariffs Malaysia imposes on US goods will be added on top of the 25% already in place.
“Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country,” Trump wrote.
Longstanding trade concerns cited
The move comes after months of trade negotiations, including a round held on June 18, as Malaysia had attempted to reduce the previously proposed 24% tariff.
According to Trump, the tariffs are meant to correct “many years of Malaysia’s Tariff, and Non Tariff, Policies and Trade Barriers,” which he described as contributing to an unsustainable trade imbalance.
Trump insisted that these imbalances posed not only an economic concern but also a “major threat to our National Security.”
Tariffs could change, depending on future ties
In the closing section of the two-page letter, Trump hinted at the possibility of future adjustments to the tariff rate, depending on Malaysia’s willingness to open up its own markets.
These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” he said.
The announcement comes just ahead of US Secretary of State Marco Rubio’s first official visit to Kuala Lumpur, where he will attend the 58th ASEAN Foreign Ministers’ Meeting, including the ASEAN–US Ministerial Dialogue.
