In response to US tariffs, Malaysia unveils US$356 million SME relief measures

Tariffs announced in April by US President Donald Trump have rattled global markets, drawn criticism from Washington’s trade partners and prompted fears of a prolonged trade war that could squeeze exporters, disrupt supply chains and curb economic growth.

The US accounted for 13 per cent of Malaysia’s total exports in 2024, at 199 billion ringgit (US$47.5 billion). The Southeast Asian country ran a surplus with its third-largest trade partner last year, with imports from the world’s biggest economy totalling 126 billion ringgit (US$30 billion).

Malaysia was hit with a 24 per cent tariff on virtually all US-bound exports, apart from semiconductors and some other electronics items. With Washington having paused its sweeping tariffs on almost all its trade partners for 90 days, Malaysia has less than two months to negotiate a trade deal with the Trump administration.

On Monday, Anwar rejected Washington’s claim that Kuala Lumpur had imposed a 47 per cent tariff on US goods, calling the allegation “not based on sound economic theory”.

“However, as one of the country’s largest trading partners, the United States’ decision will certainly have a significant impact on Malaysia’s export performance, thereby affecting GDP growth,” Anwar told lawmakers at a special parliamentary session to discuss the trade impasse with Washington.