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MALAYSIA may still be able to negotiate more favourable tariff terms with the United States ahead of the 1 August deadline, as American officials signal a continued willingness to engage, despite long-standing concerns over trade imbalances and non-tariff barriers, economists have said.
US Secretary of State Marco Rubio, speaking during the 58th ASEAN Foreign Ministers’ Meeting (AMM) in Kuala Lumpur, reaffirmed the Trump administration’s readiness to work with ASEAN nations, including Malaysia, to reach “mutually beneficial” trade arrangements.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said Rubio appeared to be making efforts to allay fears over Washington’s protectionist stance.
“While tariffs remain the US government’s tool of choice, Washington is open to discussions and negotiations. I suppose there is hope that a win-win solution can be achieved,” he told Business Times.
Afzanizam said the US continues to view trade imbalances as having significantly impacted its economy, hence its reliance on tariffs as a corrective instrument. However, he stressed that Malaysia must directly address the issues flagged by the United States.
Among the non-tariff concerns cited in the US Trade Representative’s report in March were Malaysia’s halal certification requirements, automotive sector permit approvals, and foreign banking regulations.
“Perhaps by addressing these issues, Malaysia could secure some form of concession in the form of lower tariffs. So, something needs to go in order to gain something,” he said.
Afzanizam also commented on the potential participation of former President Donald Trump at the upcoming ASEAN Summit in October, noting that Malaysia and its neighbours should remain prepared for unexpected developments, given Trump’s history of abrupt policy announcements.
Echoing these sentiments, economist Dr Geoffrey Williams observed that Rubio had projected an “open and friendly” stance throughout his engagements at the AMM.
“Rubio made it clear the US is open to continuing negotiations with all ASEAN members to secure win-win trade deals,” Williams said, adding that he had underlined ASEAN’s strategic and long-term security significance to the United States.
“This shows that the US is committed for the long run,” he said.
Williams acknowledged that Malaysia still had an opportunity to obtain better tariff terms but cautioned that the current approach, as expressed by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, seemed “very stubborn” and might hinder progress before the 1 August deadline.
He added that a visit from Trump could help solidify relations between the US and ASEAN while also spotlighting Malaysia’s ASEAN chairmanship. Nevertheless, he warned that unresolved tariff issues could dominate the summit unless a resolution is reached beforehand.
Rubio, addressing the AMM, said the new tariff measures were part of a broader plan to rebalance the American economy and address systemic disadvantages in global trade—a position consistent with Trump’s economic platform.
He stated that official letters regarding the new tariffs would be sent to Southeast Asian countries “at some point”, but added that “the door for negotiations remains open”, noting that clarity was needed and that 1 August would serve as a clear starting point.
Trump had initially announced the new 25 per cent import duty on Malaysian goods on 2 April, claiming the measure was necessary to “protect domestic industries” from what he described as unfair trading practices. Enforcement was deferred by 90 days to allow space for negotiations. - July 13, 2025