Malaysia braces for tough US tariff talks as Trump threatens global “take it or leave it” deal

KUALA LUMPUR, June 12, 2025 – Malaysia is gearing up for critical trade negotiations with the United States in Washington on June 18, aiming to slash tariff rates on key exports as part of the US’s new 10% minimum tariff policy. The talks, led by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, seek to lower the current 24% tariff imposed on certain Malaysian goods and secure rates below 10% for sectors vital to both nations’ economies. While specific industries under discussion remain undisclosed, the stakes are high for Malaysian exporters.

TARIFF TALKS

The urgency of the negotiations stems from a broader US tariff overhaul announced in April 2025, which impacts over 60 countries, including Malaysia. The US has temporarily paused the implementation of these tariffs for 90 days to allow for talks, but the clock is ticking. Adding pressure, President Donald Trump warned on Wednesday that he plans to send letters to trading partners within one to two weeks, unilaterally setting tariff rates ahead of a July 9 deadline to reimpose higher duties. Speaking at the Kennedy Center in Washington, Trump called the letters a “take it or leave it” deal, signaling a hardline stance.

Doubts linger about whether Trump will follow through, as he has a history of setting deadlines that slip or fizzle out. On May 16, he promised to set tariff rates within two to three weeks, yet the US has only secured a trade framework with the United Kingdom and a temporary tariff truce with China. For Malaysia, the upcoming talks are a critical opportunity to protect its exporters from potentially crippling duties, but Trump’s unpredictable approach looms large.

Negotiations

As the June 18 negotiations approach, Malaysia is focused on safeguarding industries that are not only crucial to its economy but also integral to the US market. The outcome could reshape trade relations between the two nations and set a precedent for other countries navigating the US’s aggressive tariff strategy.

Source: Bernama, Foreign News Agencies

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