Anwar confirms lowered tariff deal from 25 to 19% with Trump, M'sians praise 'angkat bola' strategy

Malaysia has deepened its trade partnership with the United States by formalising a deal on the sidelines of the 47th ASEAN Summit on Oct. 26, securing a 19 per cent tariff rate and expanded market access for key Malaysian industries, reported Bloomberg.

Trump’s administration had initially floated a 25 per cent tariff in July, before lowering it to 19 per cent in Aug. 2025 following negotiations.

25 to 19 per cent officially recognised

The signing of the Agreement on Reciprocal Tariffs (ART) was witnessed by Malaysian Prime Minister Anwar Ibrahim and U.S. President Donald Trump, officially recognising the tariff deal first agreed in principle in August, according to The Malaysian Reserve.

The move is seen as a key step in strengthening bilateral economic ties and strengthening Malaysia's global trade role.

The agreement also includes a critical minerals pact, under which Malaysia pledged not to ban or impose quotas on exports of rare earth elements to the U.S. as part of Washington’s effort to diversify supply chains amid its ongoing trade rivalry with China, reported Free Malaysia Today.

Anwar, as reported by The Business Times, hailed the agreement as a “significant milestone” in bilateral relations that goes beyond trade.

Observers even noted that the light-hearted joget or dance between Anwar and Trump at the welcoming ceremony, along with Anwar’s repeated attempts to humour the president, symbolised the diplomatic balancing act Malaysia is pursuing with regards to the global giant that is the U.S.

Netizen reaction

Malaysian netizens largely applauded the move online, with many praising Anwar for his diplomatic finesse in securing better trade terms.

Others, however, were less impressed, citing concerns over the deal that Malaysia had struck and frowning at the spectacle of Anwar dancing with Trump.

One Malaysian Redditor perhaps best summed it up with his comment, "No choice, need to angkat bola (lit. carry balls, or curry favour)."

Tariff cut offers Malaysia more stability

Malaysia’s Investment, Trade and Industry Minister Tengku Zafrul Aziz said that the agreement builds on Malaysia’s existing commitments by securing improved and more stable access to the US market, according to The Malaysian Reserve.

He called the tariff cut of 25 to 19 per cent a form of “strategic liberalisation” aimed at boosting the competitiveness of Malaysian exporters and giving businesses on both sides greater certainty.

“There’s no change from Malaysia’s commitment to the US. In fact, the US has actually given better access compared to what was before, with stronger commitments to open their market."

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Top images via DRMNewsInternational/Youtube.