Malaysia seeks U.S. tariff reduction as global trade war slows economic growth

Malaysia is pushing to reduce tariffs on its exports to the United States. Prime Minister Anwar Ibrahim told parliament on Monday that the U.S. has agreed to continue discussions. He described the negotiations as still early but noted they show progress.

This sentiment was also echoed recently by the Governor of Bank Negara Malaysia (BNM), Malaysias central bank. He also said that economic growth projection may have to be revised because of a deteriorating global economy.

Economists have remained cautiously optimistic about Malaysia‘s export outlook, pointing to the strong performance in some key sectors such as electrical and electronics (E&E) and palm oil. Malaysia’s exports amounted to RM118. 26 billion, up 6.2% from the same period last year. Even so, economists say ongoing trade tensions may weigh on the countrys economic expansion prospects.

The International Monetary Fund (IMF) has warned that retaliatory tariffs threaten Asia‘s growth and disrupt supply chains. For 2025, the IMF’s World Economic Outlook projects a world economic growth of 3.2%, and in the case of Asia, this growth is anticipated to be a little higher at 4.4% in the same period.

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