Malaysia Seeks US Tariff Reduction Amid GDP Growth Concerns

Malaysia is engaged in early negotiations with the United States to seek reductions or exemptions from recently imposed 24% reciprocal tariffs, which threaten to impact its economic outlook. Prime Minister Anwar Ibrahim and Trade Minister Tengku Zafrul Abdul Aziz have both acknowledged that Malaysia is unlikely to meet its 2025 GDP growth target of 4.5% to 5.5%, with the International Monetary Fund revising the forecast down to 4.1%. The government has responded by establishing the National Geo-Economic Coordination Centre to monitor and address the effects of changing global trade dynamics and non-tariff barriers. Malaysia is also strengthening regional collaboration with ASEAN and pursuing new markets outside the US to diversify its trade portfolio. Both government and central bank officials are closely monitoring developments and plan to revise economic forecasts once the outcome of tariff negotiations becomes clearer. These measures reflect Malaysia’s broader strategy to remain resilient amid global trade tensions and economic uncertainty.