We derive an asymptotic equation that describes the propagation of weakly nonlinear surface waves on a tangential discontinuity in incompressible magnetohydrodynamics. The equation is similar to, but simpler than, previously derived asymptotic equations for weakly nonlinear Rayleigh waves in elasticity, and is identical to a model equation for nonlinear Rayleigh waves proposed by Hamilton et al. The most interesting feature of the surface waves is that their nonlinear self-interaction is nonlocal. As a result of this nonlocal nonlinearity, smooth solutions break down in finite time, and appear to form cusps.