Could Malaysia be next for Trump's tariffs?

Summary

• As US President Donald Trump plans to announce a new round of import tariffs, Malaysia could be on the list.

• The tariffs are aimed at addressing the US’ trade deficits, and data suggests there is a trade imbalance between both nations.

Malaysia could fall under the United States’ crosshairs as President Donald Trump readies to announce a new round of import tariffs aimed at addressing the country’s trade deficit.

Trump had previously said he would unveil a slew of new tariffs on April 2.

However, he announced on Tuesday that not all of the threatened levies would be imposed on that date, and some countries may get breaks.

According to a Reuters report, two senior US officials - Treasury Secretary Scott Bessent and top White House economic adviser Kevin Hassett - explained last week that the tariffs would focus on countries with the largest trade surpluses with the US as well as those with high tariff and non-tariff barriers to trade.

This includes a supposed list of “Dirty 15” countries.

What is on the list is still unclear.

Particular interest

The US government has yet to publish the list. Bessent had reportedly said it comprises 15 percent of countries, while Hassett said the focus would be on 10 to 15 countries.

The US Trade Representative’s Office had sought public comments on imposing reciprocal tariffs against other countries.

It said it is “particularly interested” in comments regarding a list of countries including Malaysia.

Other countries and territories on the list are Argentina, Australia, Brazil, Canada, China, the European Union, India, Indonesia, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Taiwan, Thailand, Türkiye, Britain and Vietnam.

“These countries cover 88 percent of total goods trade with the United States,” the request stated.

Data from the US Census Bureau, meanwhile, indicated that the US had a trade deficit in goods of US$1.2 trillion last year. Of that, US$24.83 billion came from trading with Malaysia, which is the 14th largest deficit in the data.

Trump had also announced that the US will impose secondary tariffs of 25 percent on countries that import oil and petroleum products from Venezuela, whether directly or indirectly.

Based on data compiled by the United Nations Commodity Trade Statistics Database, however, Malaysia has not imported such commodities from Venezuela since 2021.

It should be noted that import tariffs are taxes levied on imported goods. The rate could differ depending on its type and/or country of origin.

It is borne by the importer and, typically, passed onto the consumer.

A higher US tariff on Malaysian goods could make it less competitive in the US market compared to goods produced within the US, or imported from places with lower tariffs.

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