Malaysia’s Exports Miss Forecast as US Tariffs Hit Trade, China Demand Cushions Impact

KUALA LUMPUR – Malaysia’s exports grew 1.9 per cent in August compared with a year earlier, missing the 3 per cent growth forecast as new US tariffs disrupted trade flows. According to the Investment, Trade and Industry Ministry, shipments to the US fell 16.7 per cent while imports plunged 36.7 per cent, resulting in a 25 per cent slump in overall trade with Washington. The US, Malaysia’s third-largest trading partner, imposed a 19 per cent tariff on Malaysian goods from Aug 7, lower than the 25 per cent initially threatened by President Donald Trump.

Exports lower with trade war vibes

The ministry urged exporters to diversify products and tap free trade agreements to withstand global policy shifts. Exports to China, Malaysia’s top trade partner, rose 10.4 per cent, partly offsetting losses. Bank Negara has warned of slower export growth for the rest of 2025.

Recap: Malaysia’s exports grew 1.9% in August, falling short of forecasts due to US tariffs, with significant declines in trade with the US but gains with China.

Business News