KUALA LUMPUR, July 22 -- Malaysia is trying to lower looming US tariffs to 20 per cent but has pushed back against American demands that officials say touch on core domestic policies.

Citing sources, Bloomberg reported that talks with the Trump administration have advanced on issues like AI chip transshipment, but Malaysia is unwilling to extend special EV tax treatment for American firms.

The government argues that continuing such exemptions past December would force it to give similar treatment to other countries.

Officials also rejected calls to reduce foreign ownership limits in finance and energy, citing political sensitivity and the need for broad stakeholder engagement.

A US demand to reduce fishing subsidies has also sparked c...