US and Malaysia Trade Agreement

At the Summit in Kuala Lumpur, Malaysia on October 26, 2025, US President Donald Trump and Malaysian Prime Minister Datuk Seri Anwar Ibrahim signed the Agreement between the United States and Malaysia on Reciprocal Trade.

Under the agreement, the United States will maintain a 19% tariff rate for Malaysia, while 1,711 tariff lines—covering key Malaysian exports such as palm oil, rubber, cocoa, aircraft parts, and pharmaceuticals—will be exempted from this rate. These tariff-free items are valued at approximately USD 5.2 billion, accounting for around 12% of Malaysia’s total exports.

In return, Malaysia has committed to offering substantial preferential market access for US industrial exports, including chemicals, machinery and electrical equipment, metals, and passenger vehicles, as well as for agricultural products such as dairy, horticultural goods, poultry, processed foods, beverages, pork, rice, and fuel ethanol. Malaysia will also work to address non-tariff barriers that impede trade in priority industrial sectors, including the export of critical minerals and rare earth elements to the US. The agreement further includes provisions on environmental protection, labour rights, intellectual property, and security cooperation.

The two sides will complete domestic procedures in the coming weeks before the agreement takes effect.

US and Cambodia Trade Agreement

Also at the sidelines of the 47^th ASEAN Summit, President Trump and Cambodian Prime Minister Hun Manet signed the Agreement between the United States and Cambodia on Reciprocal Trade.

Under the Agreement, Cambodia has eliminated tariffs on 100 percent of US industrial goods and US food and agricultural products, a commitment that has already been implemented. The United States will maintain a 19 percent reciprocal tariff rate on Cambodian goods, while identifying certain products in Annex III to Executive Order 14346 of September 5, 2025 for a zero percent reciprocal tariff rate.

Both countries committed to addressing non-tariff barriers, including simplifying import licensing, streamlining regulatory approvals, recognizing US sanitary and phytosanitary measures, and strengthening enforcement against counterfeit and pirated goods. They will also cooperate to prevent barriers to US agricultural exports through improved regulatory recognition.

The Agreement further covers digital trade, services, investment, intellectual property, customs facilitation, and state-owned enterprise practices, and promotes cooperation on supply chain resilience, investment security, and export controls.

Both sides also welcomed a forthcoming commercial partnership between Air Cambodia and Boeing to support Cambodia’s aviation sector development.