Malaysia races to avert tariff hit as businesses expect lower rate

[KUALA LUMPUR] With just weeks to go before a 25 per cent US tariff kicks in, Malaysia is intensifying efforts to negotiate a more favourable rate. Market observers widely anticipate a reduction, with some projecting a revised tariff as low as 15 per cent.

Many believe the situation remains fluid, with analysts at MIDF Research citing ongoing negotiations by the Ministry of Investment, Trade and Industry as a positive signal.

“Based on Vietnam’s latest trade agreement with the US, we expect that it will be lower than the tariff set for Aug 1. We believe Malaysia could land around the 15 per cent level,” said MIDF in a report on Tuesday (Jul 8).