Kuala lumpur: The Ministry of Investment, Trade and Industry (MITI) has affirmed Malaysia’s continued competitiveness despite the new tariff rates imposed by the United States.

According to BERNAMA News Agency, MITI emphasized that the government’s strategy to engage in prudent negotiations rather than retaliatory actions has resulted in balanced outcomes.

On July 31, 2025, the United States announced the implementation of reciprocal tariffs on Malaysia, setting the rate at 19 percent, effective August 8, 2025. Although the tariff rate has been reduced from an initial 25 percent to 19 percent, MITI acknowledged there will still be some impact, albeit minimal compared to previous levels.

“The imposition of the tariff is expected to have a direct impact on the demand for Malaysian products in the US market,” MITI stated. The increased tariffs are likely to lead to higher import costs, raising product prices in the US, and potentially prompting US importers to pressure Malaysian exporters to absorb the costs of these tariffs, the ministry explained in a response published on the parliament’s website.

MITI’s statement was in response to an inquiry from Senator Datuk Mustafa Musa regarding the effects and industry adjustments required following the US’s decision to lower reciprocal tariffs to 19 percent. In light of the primary impact on Malaysian exports, the MADANI Government, through MITI and the Malaysia External Trade Development Corporation (MATRADE), has taken steps to mitigate these effects. This includes organizing roadshows for affected industrial sectors to disseminate information on the tariffs and available support opportunities.

Additionally, MITI, in collaboration with the Malaysian Investment Development Authority (MIDA), has launched strategies to attract investment in high-value sectors. These initiatives aim to contribute to industrial development, ecosystem expansion, and the strengthening of the local supply chain, the ministry added.