Donald Trump reduces US tariffs on Malaysia to 19% – new rate in effect from August 7; previously 25%

Malaysia will now face a 19% tariff on exports to the United States, down from the previous 25%. This comes after US president Donald Trump signed an executive order on July 31, 2025 modifying the reciprocal tariff rates for certain countries.

To recap, Trump initially announced a 24% tariff on goods imported from Malaysia in April this year, which was later increased to 25% in July, the latter originally set to take effect beginning August 1.

The newly revised tariff rate was hinted by Malaysian prime minister Datuk Seri Anwar Ibrahim during the tabling of the 13th Malaysia Plan or Rancangan Malaysia Ketiga Belas (RMK13), and will come into effect on 12.01am EDT on August 7, 2025 (12.01pm MYT on the same date).

While Malaysia currently does not export cars to the US, it is a global player in the supply of automotive components, particularly semiconductors, which remain exempt from the tariff.

According to the office of the United States Trade Representative (USTR), the US imported USD52.5 billion (about RM12.3 billion) worth of goods from Malaysia, up 13.7% from 2023. Electrical and electronic products, including integrated circuits and semiconductor devices, make up the majority of exports to the US.

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