(Reuters) -Malaysia’s trade minister Tengku Zafrul Aziz said on Wednesday that the country has no plans to retaliate against a 25% tariff levied on its goods by the United States, and was “still optimistic” about reaching a trade deal.
Speaking in an interview at the Reuters NEXT Asia summit in Singapore, Tengku Zafrul said Malaysia still had a few more weeks to negotiate the final terms of an agreement.
“I’m in touch with USTR as recently as yesterday, and we all agreed that we could continue our negotiations, so we still have time,” he said.
“We are appreciative that the timeline has been extended to first of August,” he added. “It gives me a bit more time to refine some of the discussion.”
Malaysia, a key exporter of semiconductors and electronics, was slapped with a revised 25% tariff on its exports to the United States, higher than the 24% rate threatened in April before President Donald Trump called a 90-day pause.
Malaysia’s trade ministry said on Tuesday it was continuing discussions with U.S. counterparts to address pending issues, clarify the scope and impact of the tariffs and pursue avenues for a timely conclusion to the talks.
“I am optimistic, especially in sectors that I feel there is a win-win,” Tengku Zafrul said.
Malaysia and other countries in Southeast Asia are among the hardest hit by Trump’s sweeping tariffs, as they rely on exports and manufacturing to drive economies collectively worth more than $3.8 trillion, some helped by supply chain shifts from China.
To view the live broadcast of the World Stage go to the Reuters LIVE page: https://www.reuters.com/world/reuters-next-asia-live-global-leaders-address-challenges-opportunities-2025-07-07/
(Reporting by Mikhail Flores; Editing by David Stanway and Jacqueline Wong)
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