There is a possibility that Malaysia can negotiate a reduction in threatened U.S. tariffs as Washington has agreed to further talks, but the global trade war meant economic growth was likely to be below target this year, the Prime Minister said on Monday.

Malaysia is facing a 24% tariff rate in July for exports to the U.S., unless an agreement is struck between both countries.

"Although these are preliminary discussions... the United States government has agreed to further negotiate with Malaysia, and there is a possibility of reducing the reciprocal tariff imposed," Prime Minister Anwar Ibrahim told parliament.

He said the suspension of most tariffs until July meant the impact was manageable for now, but said Malaysia was unlikely to meet its economic growth forecast of 4.5% to 5.5% this year.