Trump Imposes 10% Import Tariffs on Malaysian Exports

Donald Trump announced additional import tariffs between 10% and 12.5% on 60 economies, including Malaysia, citing forced labor practices. The United States Trade Representative implemented a 10% tariff on nearly all Malaysian exports on July 24, 2026, under Section 301 of the US Trade Act of 1974. This action follows a February ruling by the Supreme Court of the United States that annulled previous tariff measures.

The US government specifically cited Malaysia's failure to effectively enforce a ban on imports linked to forced labor. These protectionist policies, combined with rising crude oil prices, caused the Malaysian ringgit to ease against the US dollar, though it strengthened against the Japanese yen, euro, British pound, and Singapore dollar.

In response, SAMENTA president William Ng urged Malaysian small and medium enterprises to reduce reliance on Western markets and leverage trade agreements like the CPTPP and RCEP to expand into East Asia, Australasia, and the Middle East. Ng called on the Ministry of Investment, Trade and Industry and the Malaysia External Trade Development Corporation to provide matching grants for export diversification and audit co-funding for labor compliance. He further urged the Malaysian government to expedite a national legislative framework regarding third-country import prohibitions to secure removal from the US tariff list.