KUALA LUMPUR, July 8 -- Malaysia has pledged to continue engaging the United States in pursuit of a fair and balanced trade agreement following the surprise announcement of a 25 per cent tariff on Malaysian goods.

The Ministry of Investment, Trade and Industry (Miti) said it took note of the US decision and emphasised the importance of maintaining constructive relations.

Washington's move, announced by President Donald Trump in a letter to His Majesty Sultan Ibrahim, the King of Malaysia, will take effect from August 1 and applies to all Malaysian exports entering the US.

Trump cited "Tariff, and Non Tariff, Policies and Trade Barriers" as the reason behind the action, which he described as a response to persistent trade imbalances.

M...