The United States lowered trade tariffs on Malaysia from 25% to 19% this morning, effective August 1. In addition to Malaysia, several other regional countries, Indonesia, Thailand, the Philippines, and Cambodia, were also subject to a lower tariff of 19%.
Vietnam was also subject to 20% while Laos remained subject to 40% as previously announced. Goods currently in transit will be given a 7-day clearance period starting August 1. No reason was given for the tariff reduction on Malaysia. President Trump had previously urged Malaysian companies to open factories in the United States if they wanted to avoid the tariffs imposed.
Indonesia had previously agreed to buy $15 billion in US energy products, $4.5 billion in American agricultural products, and 50 Boeing-made jets to avoid the much higher 32% tariff. What concessions Malaysia will give to the United States to receive this 6% tariff reduction will most likely be announced by Trump or PMX when the American President attends the ASEAN conference in Kuala Lumpur next October.