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Trump-Anwar Call Paves Way for Reduced US Tariffs on Malaysian Exports

Malaysia’s recognition of US halal standards paired with rare earth element access underpins an agreement set to be announced on Aug. 1.

Malaysian Prime Minister Anwar Ibrahim speaks at the IISS Shangri-La Dialogue security summit in Singapore, May 31, 2025. REUTERS/Edgar Su/File Photo
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Overview

  • President Trump and Prime Minister Anwar Ibrahim spoke on July 31 to finalise terms ahead of a looming 25% US tariff deadline on Malaysian goods
  • The pact will cut US duties on Malaysian imports to between 15% and 20%, subject to a formal announcement on Aug. 1
  • Malaysia has agreed to recognise US halal certification across several product categories, including pharmaceuticals
  • Kuala Lumpur will supply the US with rare earth elements from its RM1 trillion deposits to strengthen American technology and defence supply chains
  • Trump confirmed he will attend the ASEAN Summit in Malaysia from Oct. 26 to 28, signalling deeper US engagement in Southeast Asia