US, Malaysia near trade agreement: The US and Malaysia have agreed to resolve trade negotiations before the end of a 90-day pause on tariffs, Bloomberg reports, citing Malaysia’s Investment, Trade, and Industry Ministry. The US had imposed 24% tariffs on the Southeast Asian country before enacting a 90-day pause on most levies. Malaysia is currently striving to reduce levies to below 10% for vital sectors.

In numbers: In 2024, US-Malaysia goods trade reached an estimated USD 80.2 bn, according to the US Trade Representative Office. US exports to Malaysia significantly increased by 43.5% to USD 27.7 bn, while US imports from Malaysia grew by 13.7% to USD 52.5 bn. The most valuable goods traded between both nations are electronic equipment, machinery, nuclear reactors and boilers, as well as optical, photo, and medical equipment, according to TradeEconomics.

Washington’s post-Liberation Day strategy: Last month’s US-UK trade agreement suggested the Trump administration was willing to compromise on its more extreme stances, supporting the idea that the Liberation Day levies were initial negotiating tactics. The agreement's non-binding nature points to an increasingly unpredictable and unstable global trade environment, suggesting a future landscape marred with frequent re-negotiations and enforceability issues.

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