In a statement, the investment, trade and industry ministry acknowledged the concerns raised by Trump over trade imbalances and market access, but said unilateral measures such as tariffs were disruptive to business operations, supply chains, and investments in both Malaysia and the US.
Adding that the government remained fully committed to protecting the interests of Malaysian businesses, workers, and consumers, the ministry said Putrajaya would take “all necessary steps” to mitigate the impact of the tariff, which is higher than the 24% originally imposed.
“The ministry will continue discussions with its US counterparts in good faith to address outstanding issues, clarify the scope and implications of the announced tariff, and identify avenues for the timely conclusion of ongoing negotiations,” it said.
“We strongly believe that through continued cooperation, both countries can find acceptable solutions that protect the interests of our economies and people while ensuring that bilateral trade and investment remain positive forces for sustainable economic development.”
The ministry also emphasised Malaysia’s long-standing economic ties with the US, noting that total trade between the two nations surged by nearly 30% in 2024 to RM324.9 billion (US$71.4 billion).
It said the US remained Malaysia’s second-largest trading partner and top export destination, making cooperation between the two economies vital for jobs, investment, and sustainable growth.
In a letter addressed to Prime Minister Anwar Ibrahim today, Trump said the 25% tariff on Malaysian goods was “far less” than what was needed to eliminate the country’s trade deficit with Malaysia.
Trump said any attempt to reroute goods through other countries to avoid higher tariffs would be penalised by the application of the higher rates.
He also warned that any decision by Malaysia to raise tariffs on US goods would result in an additional 25% tariff in response.
Malaysia had faced a 24% tariff on certain exports to the US unless both sides could reach an agreement before the end of the 90-day pause today.