Why Malaysia Got 19% Tariff from US? Something to Do with Thailand-Cambodia Peace Deal, ah?

 

 

By: Son Stephen 
Date: August 2, 2025

Hello there!

Wah, lately a lot of people talking about US tariff, right? Especially when they say Malaysia kena (got) 19% tariff from US under Trump administration’s new trade policy. So what's going on lah? Let’s break it down one by one.

Malaysia Got 19% Tariff — But Why?

So here's the thing — Malaysia is not in the worst position (not like Brazil kena 50% or India 38%), but still, 19% is quite high la. People also wondering, why not just 10% like Singapore or UK?

Actually, got few reasons:

• Trade imbalance: Malaysia exporting a lot to US, but importing less. US see this and say, “eh, not fair leh!”
• No free trade agreement: Malaysia no FTA with US like South Korea or Canada.
• Market not fully open: American companies complain hard to enter Malaysia’s market, too many local protections.

But Got One More Thing — Peace Deal?

Some say one of the reason Malaysia kena 19% is because we recently help mediate peace between Thailand and Cambodia, you remember that one? Yah, after months of tension and even some border skirmish, Malaysia step in quietly to facilitate dialogue.

Success leh — both sides agree to a ceasefire and start joint patrol. But US not very happy with the way Malaysia go about it. Why?

• Malaysia didn’t consult US beforehand.
• Cambodia got strong ties with China, so US a bit sus (suspicious).
• Trump team maybe think Malaysia acting too independent, like “third force” in ASEAN.

So, kena 19% — partly economic reason, partly geopolitics, lor.

Compared to Others — Not So Bad Also

Country	Tariff Rate	Special Reason
Singapore	10%	Ally, open market, good US access
UK	10%	Strong FTA with US, same values
South Korea	15%	FTA country, but sensitive sectors like auto & steel got hit
Taiwan	20%	Even after promising USD 400B investment in US semiconductors
India	38%	Buying cheap Russian oil, US not happy
Brazil	50%	Political chaos + diplomatic clashes
Malaysia	19%	No FTA, market access limited, and maybe… peace deal backlash?

What Now for Malaysia?

Government now trying to reduce tariff impact:

• MITI already send delegation to Washington
• Local exporters getting support to diversify market
• Talks ongoing to maybe negotiate mini-deal

But quite hard la, because US this time not so flexible. Trump team very aggressive with this "America First" policy again.

Closing Words

You see, trade nowadays not just about economics. Got political element, security issue, even who you talk to also matter.

Malaysia kena 19%, okay lah — not worst, but definitely not best. Hopefully next round can negotiate better deal.

Until then, our business must tahan (endure), diversify market, and show US that we also important partner, can work together.

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Got thoughts or feedback? Drop in the comments, lah.
Let’s continue to discuss this — because it’s not just about tariff. It’s about Malaysia’s future in global economy.