Indonesia's Tariff Is 19 Percent, Malaysia's Turn To Continue To Negotiate To Reduce Trump's Import Tariff

UNSPLASH/Putra Mahirudin ILLUSTRATION

JAKARTA - The Malaysian government continues to negotiate regarding the application of the import rate set by United States President Donald Trump, in order to reduce the negative impact of the tariff on the national economy.

Malaysian Transportation Minister Anthony Loke hopes that ongoing negotiations with the US government ahead of the possibility of imposing a tariff of 25 percent on Malaysia starting August 1, will help reduce the impact on the country's maritime industry and ensure it remains competitive.

He noted that the maritime sector is currently performing well, supported by higher trading volume at the port operated by MMC Corporation Bhd and Westports Holdings Bhd.

"Currently, our performance is good. If we look at our ports, their performance is very good because the volume is increasing," he said.

"Faktanya, kami sedang menunggu pengumuman dari Lloyd's List pada bulan Agust ini yang akan mengonfirmasi bahwa Pelabuhan Klang termasuk dalam 10 port terbuka di dunia," ujarnya dilansir ANTARA, Rabu, 16 Juli.

Therefore, said Loke, the government is trying its best to utilize all available diplomatic channels to secure better agreements with the US.

"We are taking advantage of our diplomatic advantage to negotiate better results so we look forward to reducing any negative impacts," he said.

Reported last week, Malaysian Prime Minister Anwar Ibrahim said Malaysia would continue negotiations with the US following the 25 percent import rate on Malaysian products.

Loke said ports in Malaysia play an important role in the country's economy, support trade and improve logistics capabilities.

He said that despite global uncertainty, Malaysia has maintained its position as a leading maritime center.

Loke said Klang Port and Tanjung Pelepas Port (PTP) continue to lead, consistently rank among the world's busiest seaports, and are expected to set new performance benchmarks in the coming weeks.

In Malaysia, about 96.4 percent of this country's trade is transported by sea. In 2024, Malaysia recorded its best trade performance, with a total trade of RM2,879 trillion.

Indonesia itself, through President Prabowo Subianto, has succeeded in negotiating with US President Donald Trump over import rates.

From the results of the negotiations, Indonesia was charged a tariff of 19 percent, or lower than the previously stated 32 percent.

The value of the import rate of 19 percent is also lower than what the US will apply to Malaysia by 25 percent as of August 2025.