Malaysia PM sees possible reduction in U.S. tariffs, but growth to miss target

Reuters

Sun, May 4, 2025, 10:24 PM 2 min read

KUALA LUMPUR (Reuters) -There is simply a anticipation that Malaysia tin negociate a simplification successful threatened U.S. tariffs arsenic Washington has agreed to further talks, but the planetary commercialized warfare meant economical maturation was apt to beryllium beneath people this year, the Prime Minister said connected Monday.

Malaysia is facing a 24% tariff complaint successful July for exports to the U.S., unless an statement is struck betwixt some countries.

"Although these are preliminary discussions... the United States authorities has agreed to further negociate with Malaysia, and determination is simply a anticipation of reducing the reciprocal tariff imposed," Prime Minister Anwar Ibrahim told parliament.

He said the suspension of astir tariffs until July meant the interaction was manageable for now, but said Malaysia was improbable to conscionable its economical maturation forecast of 4.5% to 5.5% this year.

Malaysia has said it is unfastened to negotiating with the U.S. connected non-tariff barriers, reducing its bilateral commercialized surplus, and exploring a bilateral commercialized agreement.

Last month, the cardinal slope politician besides said this year's maturation forecast would person to beryllium lowered due to the fact that of the planetary commercialized war.

Anwar said Malaysia would besides aggressively research caller trading opportunities and boost exchanges betwixt existing commercialized partners, including China and the European Union.

He said negotiations to amended a free-trade statement betwixt the ASEAN determination bloc and China volition beryllium finalised successful the adjacent future, with commercialized ministers from the respective countries acceptable to conscionable connected May 19.

Malaysia is seat of the 10-member Association of Southeast Asian Nations grouping this year.

Countries crossed export-driven Southeast Asia person been deed with steep tariffs, with six of 10 listed nations from the portion slapped with levies of betwixt 32% and 49%.

(Reporting by Danial Azhar; Editing by John Mair)