WASHINGTON, D.C. – July 8, 2025 – The White House has issued a letter dated July 7, 2025, from President Donald J. Trump to Malaysia’s Prime Minister, Dato’ Seri Anwar bin Ibrahim, outlining a new trade policy. Starting August 1, 2025, the United States will impose a 25% tariff on all Malaysian products shipped to the U.S. as part of an effort to address the significant trade deficit with Malaysia.
The letter highlights the U.S.’s commitment to maintaining a strong trading relationship despite the deficit, emphasizing Malaysia’s role as a key economic partner. President Trump noted that the tariff, while substantial, is lower than what might be required to fully eliminate the trade imbalance, and the U.S. is prepared to adjust it—either upward or downward—based on future trade relations. He also urged Malaysia to open its markets and reduce its own tariffs and trade barriers, suggesting potential adjustments to the policy if progress is made.
The administration stressed that the tariffs are a necessary measure to correct years of trade deficits, citing national security and economic sustainability concerns. The letter warns that any additional tariffs imposed by Malaysia will be added to the 25% rate, reinforcing the U.S.’s stance on reciprocal trade policies.
Both nations are encouraged to work collaboratively to ensure a smooth transition, with the U.S. promising to expedite approvals and manufacturing processes within weeks. The White House expressed optimism about the long-term trading partnership, stating, “You will never be disappointed with The United States of America.”