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US Lowers Malaysia's Tariff

Aug 01, 2025

The US has announced a lower tariff for the import of goods from Malaysia. 

In his latest executive order, President Donald Trump set a 19% tariff on Malaysia, compared to the 25% rate that was given previously.  

This comes months after negotiations between Malaysian and American trade officials.  

The announcement also comes a day after Datuk Seri Anwar's phone call with President Trump.  

Meanwhile, several other ASEAN nations were hit with tariffs of 19%, namely Thailand, Indonesia, the Philippines, and Cambodia. 

Vietnam's tariff is 20%, Brunei's 25%, while Laos and Myanmar had the highest rates, at 40%. 

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The Malaysian Council for Tobacco Control has welcomed the 13th Malaysia Plan's focus on a pro-health tax that targets tobacco and vape products. 

It told FMT that tobacco tax MUST be raised significantly, because the last revision happened a decade ago.  

However, it disagrees with the vape tax, and called for such products to be banned entirely. 

Meanwhile, the National Cancer Society says the taxes should result in tobacco and vape products having the same price.  

It's to ensure that people will NOT consider vapes as a cheaper alternative to smoking. 

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The Health Minister has welcomed the 13th Malaysia Plan's increased allocation for the healthcare sector.  

He says the RM40 billion proves the government's commitment to having universal health coverage. 

This will ensure that no citizen misses out on quality health services.

Separately, the Ministry has played down concerns that the medical tourism industry will be impacted by the expanded SST, which includes a 6% service tax on foreign patients.