Trump-Anwar phone call sets the stage for expected tariff deal

A lower rate of 15-20% is likely; Trump confirms he will attend next Asean Summit

- Shannon Teoh

KUALA LUMPUR - United States President Donald Trump and Malaysian Prime Minister Anwar Ibrahim engaged in a long-awaited phone call on July 31, just a day ahead of Washington's Aug 1 deadline before a 25 per cent tariff is levied on Malaysian exports.

Official sources told The Straits Times that a deal to lower the US tariff rate to a maximum of 20 per cent or as low as 15 per cent "should be" announced by Aug 1. Kuala Lumpur conceded on several issues, including halal certification and the supply of rare earths, a critical mineral used in advanced technological applications.

"The call was made earlier this morning after it was proposed by the Americans just a few hours back," said a top Malaysian government official with direct knowledge of the matter.

Datuk Seri Anwar also confirmed the 6.50am call during an afternoon speech in Parliament, saying that "after the discussion and some clarifications that I made, he decided to postpone the announcement of the tariff rate to tomorrow".

The Premier added that Mr Trump confirmed he will attend the next Asean Summit, to be hosted by Kuala Lumpur, in October.

The Trump administration has struck deals with several other Asian countries, including Indonesia, Japan, the Philippines, South Korea and Vietnam ahead of the Aug 1 deadline. Malaysia is under pressure to similarly lower levies on RM200 billion (S$60 billion) worth of goods to its largest export market.

Even then, many countries are still locked in further discussions with US officials to iron out details from inclusions to implementation and enforcement matters.