Raggie Jessy Rithaudeen
United States President Donald Trump has imposed a 24 percent ‘discounted’ reciprocal tariff on all imports from Malaysia, effective April 3, 2025.
Trump made the announcement at 4pm ET Wednesday, which he referred to as “liberation day,” saying Malaysia imposed a 42 percent tax on U.S. products that entered the country.
The “reciprocal” tariff strategy isn’t targeted to specific countries but involve all nations imposing tariffs on American products. The purpose, according to Trump, is to prevent the U.S. from being taken advantage of.
The move is also aimed at encouraging foreign companies to establish U.S. manufacturing bases to avoid border taxes on goods they intend to sell to the American market
Several global firms, including Honda, Stellantis, TSMC, and Samsung, have already pledged to shift production to the U.S. in response to the policy.
The administration has also reinstated a 25% tariff on steel imports and raised the aluminum import tariff to 25%, moves designed to shield domestic industries from foreign competition.
The American Steel Manufacturers Association and the Aluminum Association welcomed the tariffs, with member companies nationwide echoing support.
Trump’s reciprocal trade plan has drawn early approval from U.S. business groups, including members of the automotive industries.
