This morning, President Trump began sending letters to world leaders regarding the new tariffs that will take effect on August 1. This is after it was postponed twice to finalize ongoing trade talks with several countries. On Truth Social, Trump shared the letters he sent to YDPA Sultan Ibrahim and Prime Minister Datuk Seri Anwar Ibrahim. In his message, Malaysia is now being imposed a basic tariff of 25% which is higher than the 24% announced last April.
Trump also said that any efforts to circumvent the tariffs will be subject to higher tariffs. He added that the tariff rate imposed is still not enough to balance the trade deficit between the two countries. Malaysian companies are being urged to open factories in the United States if they want to avoid the tariffs imposed. If they are interested, approval could be given in just a few weeks.
Trump also reminded the YDPA that if Malaysia imposes reverse tariffs on American products, the same amount will be added to the basic tariff of 25%. These tariffs will only be reduced if Malaysia agrees to reduce tariffs and change the trade policy imposed on America.
All letters sent to heads of state this morning use the same template with only the names of the heads of state and the amount of tariffs imposed changed. A total of 15 letters were sent by Trump this morning.
The basic tariff rate of 25% imposed on Malaysia is most likely due to the depreciation of the Dollar since the past week. The formula used by America previously is to calculate the trade deficit between them and the country they want to impose tariffs on. Trump's demand for Malaysian companies to open factories in America is absurd. Malaysia exports electrical goods (TVs, washing machines, Mac Minis), rubber products, machinery, spare parts, scientific equipment and chemicals that are cheaper than if they were manufactured there.
Malaysia's fate is the same as South Korea, Japan, Kazakhstan and Tunisia which are also subject to 25% tariffs. Neighboring countries Myanmar is charged 40%, Laos 40%, Thailand 36%, Cambodia 36%, Serbia 35%, Bangladesh 35%, Indonesia 32%, South Africa 30%, and Bosnia 30%.