He dismissed a recent Bloomberg report quoting government sources that Malaysia was targeting a 20% tariff rate, saying that is not the government’s direction.

“The direction is to get (a tariff rate that is) as low as possible. We are not aiming for 20%. The target is lower than that,” he told a press conference after attending the Asean Semiconductor Summit 2025 here today.

Tengku Zafrul also said discussions with the US were still ongoing, with just about a week left before the Aug 1 deadline.

“It’s progressing. There are discussions happening. In fact, this week alone, we are still in negotiations. We are still on track to meet the deadline,” he said.

Asked if he was confident of securing a rate below 20%, Tengku Zafrul replied: “No, I’m not confident, but that’s the target. I don’t get to decide the number, as you know.”

Pressed on whether Malaysia would be offering specific concessions to the US, he said details would only be made public once the talks conclude.

“It’s still a negotiation. We will reveal it once the negotiations are completed. I’m looking at all areas that will help us conclude the negotiations,” he said.

Negotiations between Malaysia and the US have been ongoing following the announcement of a 25% tariff on Malaysian goods earlier this month.

Prime Minister Anwar Ibrahim was also reported to have said that Malaysia will not compromise on matters of trade sovereignty, national interest, or socioeconomic policy, whether in talks with the US or with multinational corporations.