The White House said Malaysia’s exports to the US will be subject to a 19% tariff, according to its official website on Thursday.
This comes after earlier warnings from Washington about potentially imposing a 25% duty on Malaysian imports. Neighbouring Southeast Asian nations face varying rates, with Thailand and the Philippines also at 19%, while Vietnam is subject to a 20% duty.
Indonesia and Cambodia match Malaysia’s 19% rate, whereas Laos faces a steeper tariff 40%. Taiwan faces a 20% adjusted tariff.
Major economies like China and the EU are treated differently — China’s rates remain under separate negotiations, while EU goods under 15% tariff face adjusted duties to meet that threshold. The US exempts some EU goods with existing tariffs above 15%, while others are raised to meet the minimum rate.
President Donald Trump in the statement cited trade imbalances as a national security threat, justifying tariffs under presidential authority from the Trade Act of 1974 and emergency economic powers.
He said April's Executive Order 14257 allows flexibility for future adjustments, with the US Trade Representative monitoring compliance and retaliation risks. He emphasised the measures are provisional, subject to change based on foreign cooperation in addressing trade deficits.
Meanwhile, Trump said while the tariffs are effective seven days after 12.01am Aug 1, goods already in transit get a seven-day grace period, softening the immediate impact on supply chains.
Strict anti-transhipment rules impose a 40% penalty on goods rerouted to evade tariffs, with public blacklists of violators, he added.
Trump said countries negotiating trade deals with the US may see temporary rates, with final adjustments pending agreements.
India faces a 25% tariff, Brazil 10%, and the UK 10%, reflecting varied US assessments of trade reciprocity.
Japan, South Korea, and Israel face a flat 15% duty, while higher tariffs target nations like Syria (41%) and Myanmar (40%), amid geopolitical tensions.
Source: theedgemalaysia