KUALA LUMPUR (July 31): US President Donald Trump will announce a new tariff rate against Malaysian goods on Friday, Aug 1, said Prime Minister Datuk Seri Anwar Ibrahim.

The US president will review the current tariff, said the prime minister, who said he hopes that it will not burden Malaysian businesses, Parliament was told during the 13th Malaysia Plan tabling on Thursday. 

Malaysia faces a proposed 25% tariff on US-bound exports, if no agreement is reached by Aug 1. That would be 1% higher than the earlier indicated tariff of 24% announced by Trump during what he called 'Liberation Day' in April.  

Anwar said Trump will announce a new tariff rate following a call with the US leader, during which they partly discussed tariff-related issues, in line with ongoing negotiations led by the Ministry of Investment, Trade and Industry (Miti) with US counterparts, including the US Trade Representative and the secretary of commerce. 

“After the discussion and the clarifications I provided, he (Trump) decided to postpone the announcement until tomorrow (Friday). The tariff rate will be announced tomorrow, and we pray it will help and not burden our economy,” Anwar told Parliament. 

Anwar, who is also the finance minister, however cautioned that Malaysia must remain vigilant as consumer prices and costs could rise if the tariff measures fall short of expectations.

“What matters is our vigilance, as there is a possibility that prices and costs may increase if the tariff is not as we expect,” Anwar said.

Separately, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government is "waiting for the official response from President Trump".

"After that, a joint statement will be issued by the US Trade Representative and Miti to detail out the agreed terms. Pray for the best for Malaysia!" he said on X. 

Malaysia is negotiating lower tariffs while it seeks to maintain existing measures that the US deem as non-tariff barriers, such as halal certification, foreign equity ownership, and government procurement policies.

Economists have drawn parallels to Vietnam’s successful negotiations with the US, which resulted in a 20% rate and set a potential benchmark for Malaysia.

For more Parliament stories, click here.