INTERNATIONAL

PM says US tariff rate on Malaysian goods to be announced Friday

Reuters 31/07/2025 | 07:30 MYT
Prime Minister Datuk Seri Anwar Ibrahim tables 13th Malaysia Plan (13MP) at Parliament,, Kuala Lumpur July 31, 2025. - BERNAMA
KUALA LUMPUR: The U.S. tariff rate on Malaysian goods will be announced on Friday, PM Datuk Seri Anwar Ibrahim said on Thursday after speaking to U.S. President Donald Trump.


AI Brief
  • PM Anwar convinced Trump to delay announcing tariff rates after discussing free trade principles.
  • Trump confirmed he will attend the ASEAN summit in Malaysia this October.
  • Malaysia's new five-year plan targets 4.55.5% GDP growth, 5.8% export growth, and 23% inflation.


Malaysia is facing a 25% tariff on its exports to the United States unless a deal with Washington is reached by Friday.

The two countries have held multiple rounds of talks, with Malaysia's trade minister saying several sticking points remained, particularly on non-trade barriers.

Anwar said he discussed tariffs "in the spirit and principle of free trade" during a phone conversation with Trump early on Thursday.

"After the explanation I provided, he (Trump) decided to review the tariff rates imposed on Malaysia, with an announcement expected tomorrow" Anwar said in a speech to parliament to present the country's new five-year economic plan. Anwar did not provide further details.

Anwar also said Trump confirmed that he would attend a meeting of the Association of Southeast Asian Nations (ASEAN) in Malaysia in October.

Malaysia will target annual gross domestic product growth of 4.5% to 5.5% from 2026 to 2030, with a deficit of less than 3% of GDP by the end of that period, Anwar said when launching the new five-year plan.

The Southeast Asian nation is also targeting export growth of 5.8% a year in the plan, and will strive to keep inflation at an average rate of 2%-3% for the period, he said.

Malaysia will allocate 611 billion ringgit ($143.76 billion) for the economic plan, with 430 billion ringgit of the total coming from the government's coffers, and the remainder from government-linked companies and the private sector, Anwar added.

"The next five years will be a crucial period for Malaysia to not only transition into a high-income nation but also to provide a high quality of living for the people," Anwar said.

Malaysia's central bank on Monday lowered its growth forecast for 2025 to a range of 4% to 4.8% from 4.5% to 5.5% due to global tariff uncertainties and shifting trade policies.

The bank also cut interest rates for the first time in five years earlier this month to "pre-emptively preserve" the export-oriented economy's growth.







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