President of the United States of America Donald J. Trump undertook an official visit to Malaysia on 26 and 27 October 2025, at the invitation of Malaysian Prime Minister Dato’ Seri Anwar Ibrahim.
The leaders discussed efforts to strengthen cooperation in the areas of trade and investment, defence and security, and people-to-people relations. The visit culminated in the execution of an Agreement on Reciprocal Trade, which builds on the earlier Trade and Investment Framework Agreement between the two nations addressing a number of tariff and non-tariff barriers, establishing a clear framework for trade, and includes reciprocal commitments for both countries.
Key terms of the Agreement on Reciprocal Trade include:
- The United States has committed to maintain at 19% the reciprocal tariffs on originating goods of Malaysia, and has identified 1,711 Malaysian products in e.g., electronics, rubber and palm-oil derivatives to receive a 0% reciprocal tariff rate.
- Malaysia has committed to provide preferential market access for US industrial goods and exports, including chemicals, machinery and electrical equipment, metals, passenger vehicles, and for US agricultural exports including dairy, horticultural products, poultry, processed products, beverages, pork, rice and fuel ethanol.
- Malaysia has committed to address barriers impacting digital trade, services, and investment, and refrain from imposing digital services taxes that discriminate against U.S. companies.
- Malaysia has committed to refrain from banning, or imposing quotas on, exports to the U.S. of critical minerals or rare earth elements.
- Malaysia has committed to address non-tariff barriers that affect bilateral trade in priority industrial areas. Malaysia has committed to accepting U.S. manufactured vehicles built to U.S. motor vehicle safety and emissions standards; streamlining import licenses for U.S. alloy steel and pipe products and steel-containing goods; streamlining halal requirements for products including cosmetics, pharmaceuticals, and medical devices; and addressing U.S. concerns with conformity assessment procedures.
- Malaysia has committed to address and prevent non-tariff barriers to U.S. food and agricultural products in the Malaysian market, including by accepting currently agreed certificates issued by U.S. regulatory authorities; streamlining halal and facility registration requirements to facilitate imports of U.S. food and agricultural products.
- The United States and Malaysia finalised commitments to address intellectual property protection and enforcement, customs and trade facilitation and good regulatory practices.
- Additionally, the U.S. Department of the Treasury and Bank Negara Malaysia are in discussions to finalise their mutual understanding on currency policy.
The visit and signing of the Agreement on Reciprocal Trade is a milestone positive step forward in strengthening relations between Malaysia and the United States, paving the way for stronger strategic bilateral ties. The agreement offers protection from tariffs and improves market access. The formal commitment from both nations will pave the way to strengthen economic and national security cooperation, enhance supply chain resilience and innovation, and provide investment security and regulatory certainty.
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