Trump's 25% Tariff on Malaysia: How Bad & What Now?

Enterprise Explores

With the US announcing 25% tariff on Malaysian goods, businesses are bracing for a potential economic slowdown. This "tariff tangle" has already prompted a downgrade in Malaysia's 2025 GDP growth forecast, creating significant uncertainty for exporters and policymakers alike. So what is the real impact, and what is the best strategy forward?

Firdaos Rosli, Chief Economist at AmBank Group, joins us to dissect the implications of these new trade barriers. He explains which sectors are most at risk, how Malaysia's competitiveness stacks up against regional rivals like Vietnam, and what our long-term trade strategy should be in an era of increasing geopolitical tension.

We discuss:

• The real impact of the 25% US tariff on Malaysia's economy.

• Which sectors are most at risk (and why semiconductors were spared the worst).

• How Malaysia's competitiveness compares to regional peers.

• The government's policy response and ongoing negotiation strategy.

• The long-term need to de-risk the economy from geopolitical influence.

For business leaders, exporters, and policymakers, this breaks down the challenges and strategies for navigating a volatile global trade environment.

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