Last updated on August 2, 2025
KUALA LUMPUR: The White House announced that Malaysian exports to the United States will now be subject to a 19% tariff, according to an official statement released on Tuesday.
This move follows earlier warnings from Washington about the possibility of imposing a 25% duty on Malaysian goods. Other Southeast Asian countries face similar adjustments — Thailand and the Philippines are also subject to the 19% rate, while Vietnam faces a 20% tariff. Indonesia and Cambodia share Malaysia’s 19% rate, whereas Laos has been hit with a steeper 40% tariff. Taiwan is subject to a revised 20% rate.
Major trading blocs such as China and the European Union are being treated under different terms. China’s tariff rates remain under ongoing negotiations, while EU goods currently facing tariffs below 15% will see rates adjusted to meet that minimum threshold. Products already exceeding the 15% tariff are exempt from further increases.
President Donald Trump defended the tariffs, citing national security risks posed by persistent trade imbalances. He invoked presidential authority under the Trade Act of 1974 and emergency economic powers to justify the new measures.
He noted that Executive Order 14257, issued in April, provides room for future revisions. The U.S. Trade Representative will oversee enforcement, compliance, and potential retaliation from trading partners. Trump emphasized that the tariffs are provisional and may be revised depending on how foreign governments cooperate in reducing trade deficits.
The new tariffs officially take effect seven days after 12:01 a.m. on August 1. However, shipments already en route to the U.S. will be granted a seven-day grace period, easing the immediate disruption to global supply chains.
To deter circumvention, the U.S. will enforce strict anti-transshipment rules, including a 40% penalty on goods rerouted to evade tariffs and public blacklisting of violators.
Trump also indicated that countries currently engaged in trade negotiations with the U.S. may be assigned temporary rates, subject to adjustment upon the finalisation of agreements.
Tariff rates vary widely: India faces a 25% duty, Brazil and the United Kingdom 10% each. Japan, South Korea, and Israel are subject to a flat 15% tariff, while higher duties target countries like Syria (41%) and Myanmar (40%) due to ongoing geopolitical concerns.
