Malaysia is pushing the United States to drop tariffs on several key products as President Trump rolled out another wave of import taxes that could shake up global trade once again.
A Malaysian trade ministry official told reporters Friday that the country wants zero tariffs on furniture, car parts, and airplane components it ships to America. The official also said Washington has agreed to look at removing tariffs on items the US doesn’t make itself, like cocoa and palm oil. A final decision on these products should come next month.
This request comes as Trump announced Thursday he’s putting hefty new tariffs on various imported goods. Kitchen cabinets and bathroom vanities from overseas will face a 50% tax, while imported couches, chairs, and other padded furniture will get hit with a 30% tariff.
The two countries are trying to wrap up a tariff deal after the US slapped a 19% tax on Malaysian goods back in August. Prime Minister Anwar Ibrahim wrote on Facebook Thursday that both sides want to finish an agreement before Trump visits Kuala Lumpur in October for a meeting with Southeast Asian leaders.
Trump’s latest tariff announcement covers a wide range of products
The president said he’s putting a 100% tariff on brand-name medicines and a 25% tax on big trucks coming into the country. He claims these steps will protect American factories and keep the nation safe.
These new trade barriers add to the many tariffs Trump has already put in place, some reaching as high as 50% on certain goods. The president has also targeted steel imports and other products from various trading partners.
Companies around the world are already dealing with messed-up supply chains, rising costs, and worried customers because of the ongoing trade fights. The Federal Reserve has said these tariffs are also pushing up prices for American shoppers.
Financial experts say Trump is now using more traditional legal methods for his trade actions. This shift comes as the Supreme Court is looking at whether his global tariffs are legal in the first place.
The new tariff announcements end a quieter period that started when Trump made trade deals with some important partners over the summer. During the spring, Trump was announcing new import taxes almost every week, which made businesses nervous about planning ahead.
Tom Barkin from the Federal Reserve Bank of Richmond told Bloomberg TV that new tariff announcements in specific industries definitely cause setbacks. He noted that some sectors have more clarity about trade rules while others are still uncertain.
Stock markets in Asia dropped Friday, with drug companies taking the biggest hits. European markets bounced back from early losses as investors tried to figure out how widely the new tariffs might apply.
American stock futures showed mixed results, suggesting investors aren’t too worried about Trump’s latest trade moves, according to BMO Economics. The firm said investors seem willing to stay calm as long as the US economy doesn’t show more serious damage from the trade war.
Trump’s announcement on his social media platform didn’t explain whether these new tariffs would be added to existing ones. Recent trade agreements with Japan, the European Union, and Britain include rules that limit how high tariffs can go on specific products like medicines.
The EU and US made a preliminary deal that would cap tariffs at 15%, though Trump hasn’t signed an official order yet. The European Commission said Friday the agreement clearly sets a 15% ceiling on all tariffs.
Claudio Feltrin, who leads Italy’s furniture industry group, worried the tariffs could cause a rush of imports from China and other countries looking for new markets to sell their goods.
Japan has a deal ensuring its tariff rates won’t be higher than what the EU and other partners pay, according to Tokyo’s trade negotiator Ryosei Akazawa.
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