Malaysia Refutes US Claim of 47% Import Tariff

5 April 2025

KUALA LUMPUR: The Government has denied the claims by the United States (US) that Malaysia has imposed a 47 per cent tariff on imports from the US.

In a statement Friday, the Investment, Trade and Industry Ministry (MITI) said the government stands firm with the view that reciprocal tariffs do not serve the principles of free and fair trade stipulated under the World Trade Organisation (WTO), of which 164 countries, including the US, is a member.

“In the spirit of maintaining positive and progressive relations with all trading partners, the Madani government will continue to engage with the US to find an amicable and fair solution to the reciprocal tariff issue.

“During this trying period, the government will continue to prioritise Malaysia’s interests, for the well-being of our people, businesses and exporters,” it noted.

MITI stated that while the economic impact of the latest US tariff measures is still being assessed, the scope and severity of the tariffs have exceeded even its most conservative projections, which were based on a cautious outlook.

As such, MITI said the 2025 gross domestic product (GDP) growth forecast of 4.5 to 5.5 per cent is currently under review.

“The precise impact is expected to be significant and will be clearer once more information is received on the implementation timeline, tariff rates, product coverage (including exemptions), and the outcome of trade negotiations.

“The speed and scale of retaliatory actions by other economies will also influence the final outcome,” it said.

Meanwhile, MITI stated that the government does not foresee a recession or a fundamental slowdown, as economic growth projections remain positive—driven by resilient household spending, strong domestic investment, healthy tourism receipts, and the continued implementation of national masterplans.

It added that Malaysia's sound economic fundamentals will enable the country to weather this challenge from a position of strength and preparedness.

The ministry noted that the government has also discussed various key measures to weather the tariff storm, including strengthening our supply chain, as well as diversifying our trade and investment interests.

"Strategic high-level engagement with the US will continue, leveraging on the Malaysia-US Trade & Investment Framework Agreement (TIFA).

"MITI and relevant ministries will continue to engage with the industry and exporters for all of us to weather through this testing period based on a whole of nation approach, and with a view to support impacted industry sectors mitigate the impact of the tariffs," it said.

President Donald Trump announced on Wednesday that the US would introduce a baseline tariff of 10 per cent on all countries and higher duties on some countries, including Malaysia at 24 per cent.