Malaysia boosts rare earth trade with US deal
Malaysia will expand production of critical minerals and rare earths through partnerships with American firms under a new trade agreement announced on Saturday. The government pledged to issue extended operating licenses and eliminate export bans or quotas on these materials bound for the United States.
The White House stated both nations will strengthen economic and security ties while improving supply chain stability. Commercial transactions between Malaysian and American businesses total approximately $150 billion in semiconductors, aerospace parts and data center equipment, plus aircraft purchases valued separately.
Malaysia agreed to grant American exporters preferential access for industrial products such as chemicals, machinery and vehicles, alongside agricultural items from dairy to pork. Washington will maintain reciprocal tariffs at 19 percent on Malaysian goods while zeroing tariffs on select products.
The Treasury Department and Bank Negara Malaysia are finalizing currency policy arrangements to support balanced economic relations. Both governments will complete domestic procedures before the agreement becomes effective in the coming weeks.
