Malaysia says 25% US tariff to replace 10% tariff, not add to it

Published 08/07/2025, 11:20
Malaysia says 25% US tariff to replace 10% tariff, not add to it

Investing.com -- Malaysia’s trade ministry clarified Tuesday that a potential 25% tariff on its exports to the United States would replace, not add to, the existing 10% base tariff imposed by Washington.

The ministry issued the statement to correct earlier remarks by Malaysia’s plantations and commodities minister Johari Abdul Ghani, who had suggested the 25% rate would be in addition to the baseline tariff.

"The current tariff is 10%. Effective 1 August, if we failed to conclude negotiations, we will be imposed with 25% only. NOT 25% + 10%," the trade ministry explained.

The United States had previously implemented a 90-day pause on a higher levy, during which time negotiations between the two countries are taking place. If these talks do not reach a conclusion by August 1, the higher 25% tariff rate would take effect.

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