Malaysia and the US move closer to finalising tariff deal: MITI

According to the Ministry of Investment, Trade and Industry, negotiations are on the right track, with both countries intending to conclude negotiations ahead of the expiry of the current 90-day pause on tariff implementation.

Malaysia and the United States are said to be making good progress on ongoing tariff negotiations, with both sides expressing their intent to finalise discussions before the 90-day pause on tariff implementation ends.

This update follows a working visit to Washington D.C. by YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry, from 18 to 20 June 2025. The visit centered on continuing engagement and negotiations on US tariffs, during which Tengku Zafrul met with the H.E. Ambassador Jamieson Greer, US Trade Representative, and the H.E. Howard Lutnick, US Secretary of Commerce.

Tengku Zafrul was accompanied by the Chief Negotiator from the Ministry of Investment, Trade and Industry (MITI), the Deputy Chief of Mission from the Embassy of Malaysia, and MITI officials based in Washington D.C.

According to MITI, the meetings progressed well, with representatives from both governments reaffirming their commitment to intensify efforts to reach an agreement that is mutually acceptable to key stakeholders from both countries. Both parties signalled a strong intent to conclude negotiations ahead of the expiry of the current 90-day pause.

Tengku Zafrul noted that in May 2025, exports to the United States had recorded the eighth consecutive month of double-digit expansion. He pointed out that the US has been one of Malaysia's top three export markets over the past decade.

According to him, much of Malaysia’s US-bound exports complement US-based domestic industries in sectors such as electrical and electronics (E&E), semiconductors, medical devices, as well as machinery, equipment, and parts. He also highlighted that Malaysia has long served as an important source of intermediate goods for US-based manufacturing industries.

Tengku Zafrul stressed that MITI has remained steadfast in upholding Malaysia’s interests in all trade and investment relations with its partners, particularly in maintaining the integrity of Malaysia’s domestic commitments and its sovereign rights.

The Malaysian delegation, led by the Minister of MITI made full use of the meetings with the US Trade Representative and the US Secretary of Commerce to strengthen bilateral investment and trade relations between Malaysia and the United States. These engagements are expected to contribute to the overall outcome of the ongoing negotiations, which MITI aims to conclude before the 90-day pause on tariff implementation ends.

The minister said the negotiations are expected to help secure Malaysia’s supply chain and create positive spillover effects for local businesses, particularly small and medium enterprises (SMEs), as well as generate more high-paying jobs for Malaysians.

"All these will further strengthen Malaysia’s position as a choice investment destination in the region, while driving the MADANI economic transformation agenda towards a high-tech and higher-income nation," he concluded.

Lead image / Tengku Zafrul's Facebook