Gofrixty [22 July 2025] – Malaysia’s trade policy is being rewritten as the country grapples with renewed pressure from Washington and the threat of new U.S. tariffs under a Trump-era economic doctrine.Tariffs of 20% on some U.S. goods have been broached by Malaysian officials, and some of Washington’s more aggressive demands — especially on electric vehicles and foreign ownership limits — are facing resistance.
The 20% duty is a country-specific measure requested by Malaysia in the course of bilateral trade negotiations that it had triggered, claiming fair treatment under the international multilateral trading system.Officials see that as a hedge against a possible protectionist turn in U.S. trade policy should Donald Trump return to office in 2025.
At the same time, resistance is being put up to U.S. demands for Malaysia to relax controls on foreign ownership in key areas of the economy, such as telecommunications and energy.Officials have said national interests must be protected and strategic industries can’t be thrown open to foreign investors without some conditions.
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U.S. negotiators are also pushing Malaysia to remove foreign investment limits in the electric vehicle industry and to let in more cars from U.S. manufacturers.But the EV thrust in Malaysia has been about building domestic manufacturing capacity.The government is concerned that foreign domination of the market would be detrimental to local startups and the country’s long-term industrial agenda.
