Country exposure · MY

Malaysia
East N Southeast Asia · Kuala Lumpur · federal parliamentary constitutional monarchy
What Malaysia means for your money — the prices you pay, the tariffs in motion, and where U.S. policy could change both.

$59.5B
U.S. imports, 2025
+14.1%
change in one year
$28.7B
U.S. exports, 2025
35M
Population
$422.0B
GDP
In your house
What you buy that Malaysia makes
America bought $59.5B in goods from Malaysia in 2025. Of every $100 of it, here's where the money went.
Semiconductors
semiconductors and chips
Telecommunications equipment
phones, routers, networking gear
Computer accessories
keyboards, drives, computer parts
Electric apparatus
Medicinal equipment
medical devices and equipment
Industrial machines, other
Furniture, household goods, etc.
furniture, mattresses, lamps
U.s. goods returned, and reimports
Other parts and accessories of vehicles
car parts and accessories
Household appliances
household appliances
2026 so far (through April): $24.4B in imports. Source: U.S. Census Bureau, International Trade in Goods (customs basis).
The other direction
What America sells to Malaysia
$28.7B in 2025 — a trade rupture cuts both ways, for American producers as well as American prices.
Semiconductors
$8.3Bsemiconductors and chips
Civilian aircraft, engines, equipment, and parts
$3.2BIndustrial machines, other
$1.8BComputers
$1.3Blaptops, desktops, monitors
Computer accessories
$1.3Bkeyboards, drives, computer parts
Crude oil
$1.2BElectric apparatus
$889MTelecommunications equipment
$864Mphones, routers, networking gear
Minimum value shipments
$817MWhere you stand
U.S. tariff posture toward Malaysia
Malaysia negotiated its reciprocal tariff down from 24% to 19% and signed a full Agreement on Reciprocal Trade with the U.S. at the ASEAN summit on October 26, 2025 — exempting 1,711 tariff lines (palm oil, rubber, cocoa, aircraft parts, pharmaceuticals; ~12% of exports) at a 0% rate in exchange for preferential market access for U.S. goods. Executive Order 14389 (Ending Certain Tariff Actions, Feb 20, 2026) then terminated the IEEPA reciprocal duties, and Proclamation 11012 replaced it with a 10% Section 122 temporary import surcharge effective February 24, 2026. Malaysia has no Section 232 steel/aluminum exposure; semiconductors sit on a separate Section 232 track.
Reciprocal tariff (assigned — terminated)
24%
The rate this country was assigned under the EO 14257 reciprocal Annex — no longer in force. The Supreme Court struck down the IEEPA tariffs and they were terminated February 24, 2026 (EO 14389), replaced by a universal ~10% Section 122 surcharge. See the timeline below for the current effective rate.
Policy in motion
Tariff status: a moving target
U.S. tariff policy toward Malaysia has changed 5 times since 2025. This page tracks it.
2026-02-24
IEEPA reciprocal tariffs terminated — replaced by 10% Section 122
In effectExecutive Order 14389 (Ending Certain Tariff Actions) terminated the IEEPA tariff duties effective February 24, 2026, replacing Malaysia's 19% reciprocal rate with a 10% Section 122 temporary import surcharge under Proclamation 11012 (capped at 150 days).
91 FR 9437 →2025-10-26
U.S.-Malaysia Agreement on Reciprocal Trade signed
AgreementAt the ASEAN summit, the U.S. and Malaysia signed a full Agreement on Reciprocal Trade maintaining the 19% reciprocal rate and exempting 1,711 tariff lines (palm oil, rubber, cocoa, aircraft parts, pharmaceuticals; ~12% of exports) at 0%, in exchange for Malaysia opening preferential access for U.S. industrial and agricultural goods.
Source ↗2025-08-07
19% reciprocal rate takes effect for Malaysia
In effectExecutive Order 14326 set the post-pause Annex I reciprocal rates; Malaysia's rate was set at 19% effective for goods entered on or after August 7, 2025, down from the 24% originally assigned and in line with regional peers.
90 FR 37963 →2025-04-10
Elevated reciprocal rates paused to 10% for 90 days
In effectExecutive Order 14266 suspended the higher country-specific reciprocal rates — including Malaysia's 24% — back to the 10% baseline for 90 days to allow negotiations.
90 FR 15625 →2025-04-05
Reciprocal tariff regime begins — Malaysia assigned 24%
In effectExecutive Order 14257 imposed a 10% universal reciprocal duty effective April 5 and a higher country-specific rate of 24% for Malaysia scheduled to take effect April 9 under Annex I.
90 FR 15041 →
Made for America
What Malaysia makes for America
Malaysia is a direct U.S. source of 12 essential goods Americans rely on — the items themselves, shipped finished off the line.
digital
27% of U.S.Semiconductors and chips
$9.5B to the U.S.
digital
8% of U.S.Fiber optic cables and networking
$6.6B to the U.S.
health
53% of U.S.N95 masks and personal protective equipment
$1.6B to the U.S.
materials
4% of U.S.Furniture
$1.2B to the U.S.
digital
17% of U.S.Specialty chips
$1.2B to the U.S.
materials
1% of U.S.Auto parts and repairs
$1.0B to the U.S.
digital
1% of U.S.Servers and cloud hardware
$819M to the U.S.
home
19% of U.S.Vacuums & floor care
$578M to the U.S.
digital
3% of U.S.Lithium-ion batteries
$572M to the U.S.
digital
4% of U.S.Printers & peripherals
$439M to the U.S.
health
3% of U.S.Surgical and sterile supplies
$438M to the U.S.
digital
4% of U.S.Headphones, speakers & home audio
$426M to the U.S.
Go deeper
The supply chain view
Malaysia sits upstream of 24 essential American goods through 12 tracked inputs.
manufactured
67%Nitrile examination gloves (Malaysia)
chemical
65%Nitrile butadiene rubber (NBR) — medical grade
chemical
45%NBR Latex (Nitrile Butadiene Rubber Latex, Medical Grade)
agricultural
42%Palm Kernel / Coconut Fatty Alcohols
agricultural
35%Vegetable Oil Blend (Palm Olein, Soy, Coconut, Sunflower)
chemical
30%Nitrile Butadiene Rubber (NBR) latex
Reference
The country itself
East N Southeast Asia · Geography, people, economy, and government — public-domain data from the CIA World Factbook.
Malaysia’s location has long made it an important cultural, economic, historical, social, and trade link between the islands of Southeast Asia and the mainland. Through the Strait of Malacca, which separates the Malay Peninsula from the archipelago, flowed maritime trade and with it influences from China, India, the Middle East, and the east coast of Africa. Prior to the 14th century, several powerful maritime empires existed in what is modern-day Malaysia, including the Srivijayan, which controlled much of the southern part of the peninsula between the 7th and 13th centuries, and the Majapahit Empire, which took control over most of the peninsula and the Malay Archipelago between the 13th and 14th centuries. The adoption of Islam between the 13th and 17th centuries also saw the rise of a number of powerful maritime states and sultanates on the Malay Peninsula and the island of Borneo, such as the port city of Malacca (Melaka), which at its height in the 15th century had a navy and hosted thousands of Chinese, Arab, Persian, and Indian merchants. The Portuguese in the 16th century and the Dutch in the 17th century were the first European colonial powers to establish themselves on the Malay Peninsula and in Southeast Asia. However, it was the British who ultimately secured hegemony across the territory and during the late 18th and 19th centuries established colonies and protectorates in the area that is now Malaysia. Japan occupied these holdings from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula (except Singapore) formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore, as well as Sabah and Sarawak on the northern coast of Borneo, joined the Federation. A communist insurgency, confrontations with Indonesia, Philippine claims to Sabah, and Singapore's expulsion in 1965 marred the first several years of the country's independence. During the 22-year term of Prime Minister MAHATHIR Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials to the development of manufacturing, services, and tourism. Former Prime Minister MAHATHIR and a newly formed coalition of opposition parties defeated Prime Minister Mohamed NAJIB bin Abdul Razak's United Malays National Organization (UMNO) in 2018, ending over 60 years of uninterrupted UMNO rule. From 2018-2022, Malaysia underwent considerable political upheaval, with a succession of coalition governments holding power. Following legislative elections in 2022, ANWAR Ibrahim was appointed prime minister after more than 20 years in opposition. His political coalition, Pakatan Harapan (PH), joined its longtime UNMO rival to form a government, but the two groups have remained deeply divided on many issues.

Geography
- Location
- Southeastern Asia, peninsula bordering Thailand and northern one-third of the island of Borneo, bordering Indonesia, Brunei, and the South China Sea, south of Vietnam
- Area
- 329,847 sq km
- Climate
- tropical; annual southwest (April to October) and northeast (October to February) monsoons
- Terrain
- coastal plains rising to hills and mountains
- Natural resources
- tin, petroleum, timber, copper, iron ore, natural gas, bauxite
- Coastline
- 4,675 km (Peninsular Malaysia 2,068 km; East Malaysia 2,607 km)
- Natural hazards
- flooding; landslides; forest fires
People & society
- Population
- 34,905,275 (2025 est.)
- Nationality
- Malaysian(s)
- Ethnic groups
- Bumiputera 63.8% (Malay 52.8% and indigenous peoples, including Orang Asli, Dayak, Anak Negeri, 11%), Chinese 20.6%, Indian 6%, other 0.6%, non-citizens 9% (2023 est.)
- Languages
- Bahasa Malaysia (official), English, Chinese (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai
- Religions
- Muslim (official) 63.5%, Buddhist 18.7%, Christian 9.1%, Hindu 6.1%, other (Confucianism, Taoism, other traditional Chinese religions) 0.9%, none/unspecified 1.8% (2020 est.)
- Median age
- 32.2 years (2025 est.)
- Life expectancy at birth
- 76.6 years (2024 est.)
- Literacy
- 95.8% (2022 est.)
Economy
- Economic overview
- upper middle-income Southeast Asian economy; implementing key anticorruption policies; major electronics, oil, and chemicals exporter; trade sector employs over 40% of jobs; key economic equity initiative; high labor productivity
- Industries
- Peninsular Malaysia - rubber and oil palm processing and manufacturing, petroleum and natural gas, light manufacturing, pharmaceuticals, medical technology, electronics and semiconductors, timber processing; Sabah - logging, petroleum and natural gas production; Sarawak - agriculture processing, petroleum and natural gas production, logging
- Agricultural products
- oil palm fruit, rice, chicken, eggs, tropical fruits, coconuts, vegetables, pineapples, rubber, bananas (2023)
- Exports - partners
- China 21%, Singapore 12%, USA 12%, Japan 5%, Hong Kong 5% (2023)
- Imports - partners
- China 24%, Singapore 11%, USA 7%, Japan 5%, Taiwan 5% (2023)
Government
- Government type
- federal parliamentary constitutional monarchy
- Capital
- Kuala Lumpur
- Independence
- 31 August 1957 (from the UK)
- Constitution
- previous 1948; latest drafted 21 February 1957, effective 27 August 1957
- Executive branch
- King Sultan IBRAHIM ibni al-Marhum Sultan Iskandar (since 31 January 2024)
- Legislative branch
- Parliament (Parlimen)
Full reference data
Every field, by section — CIA World Factbook. Open a topic to expand it.
Introduction
Travel Facts
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Page last updated: Wednesday, July 20, 2022