KUALA LUMPUR, April 4 -- Malaysia will face a significant economic challenge with US President Donald Trump's "Liberation Day" tariffs imposing a 24 per cent rate on its exports, a significant increase that threatens to disrupt trade and growth in the region, according to Fitch Ratings.

The move is also expected to raise the overall US effective tariff rates (ETR) to about 25 per cent, the highest in over 115 years, leaving Malaysia with limited room to manouvre.

According to Fitch Ratings, "the broad-based nature of the tariff hikes constrains the scope for trade diversion, underlining the likelihood that the trade war will have adverse effects all round."

For Malaysia, the rate is on the higher end, comparable to those imposed on oth...