US President Donald Trump has signed an executive order revising the reciprocal tariffs rate on various regions. As one of the trading partners affected by the updated ad valorem duties, Malaysia now faces a 19% tariff, reduced from the previous 25%.
This new tariff structure will take effect seven days from the date of the order, which was signed on 31 July 2025. The updated rate will apply to all goods entering the US, although there are limited exceptions for shipments that are already in transit.
Neighbouring nations see similar rates, with Thailand, Indonesia, the Philippines, and Cambodia facing the same 19% rate. Vietnam is subject to a 20% tariff, and Brunei is listed at 25%. Meanwhile, Myanmar and Laos are hit with the highest rate, which is 40%. Singapore is notably not included in this update.
Trump also added that there will be a 40% penalty on goods rerouted to evade tariffs. Additionally, violators will be added to public blacklists. He also mentioned that countries negotiating trade deals with the US may face temporary rates.
Back in July, Trump announced that Malaysian goods entering the US will be subject to a 25% tariff, which was 1% higher than what was initially set in April. Trump also explained that there would be no tariff should Malaysia or its companies manufacture products in the US.
