Tengku Zafrul maintains a firm stance on upholding halal standards and rejects any exclusive rare earth deals with the United States.
The United States has reduced its reciprocal tariff on Malaysian-manufactured goods, a move that is expected to enhance the competitiveness of Malaysian exports in the US market. The reduction, from 25% to 19%, is scheduled to take effect on August 8, 2025 [1][2][3].
The Federation of Malaysian Manufacturing (FMM) views the tariff reduction as a timely and strategic move. FMM President Tan Sri Soh Thian Lai believes the reduction is significant for industry players, especially those operating on thin margins or competing in price-sensitive global supply chains [2].
The tariff reduction is expected to support export growth and improve market access between Malaysia and the US. Specifically, several export-oriented industries, including electrical and electronics, machinery and equipment, rubber-based products, and processed industrial goods, may benefit from improved competitiveness and increased demand [3].
The reduction benefits both Malaysian exporters and US importers by improving the overall cost structure. Although the 6 percentage point reduction may seem modest, it is significant for industry players competing internationally [2]. The burden of tariffs is often shared across the supply chain, so the reduction is expected to allow Malaysian goods to be priced more competitively against products from other countries.
Malaysia’s trade ministry regards the new 19% tariff as aligned with rates imposed on other Southeast Asian countries, maintaining important national policies during negotiations and thus preserving socio-economic stability. The ministry and related agencies plan to support exporters, particularly small and medium enterprises, to adjust to this revised tariff environment to further mitigate any negative impacts while capitalizing on opportunities for export expansion [1][3].
The tariff reduction is seen as an important signal of improved bilateral trade relations. The reduction of the US tariff on Malaysian-manufactured goods is a meaningful step towards fostering more balanced trade relations between Malaysia and the US. Manufacturers are mindful of global market volatility and ongoing supply chain disruptions and are expected to factor these considerations into their planning and responses to future shifts in market demand [1][2][3].
In conclusion, the lowered tariff rate improves the cost competitiveness of Malaysian manufactured goods in the US market, making them more attractive to American buyers and helping Malaysia maintain or increase its export share amid global trade dynamics [1][2][3].
References:
- The Star Online
- Bernama
- New Straits Times
- The positive news about the lowered tariff on Malaysian goods in the US market, following a 6 percentage point decrease, is expected to be advantageous for the environmental industry in Kuala Lumpur, as export-oriented businesses may experience increased demand and improved competitiveness.
- The Federation of Malaysian Manufacturing has expressed optimism about the new tariff, believing it will positively impact the finance and business sectors in Malaysia, particularly small and medium enterprises, as they navigate this revised tariff environment.
- The reduction in the US tariff on Malaysian-manufactured goods is not just beneficial for exporters in Malaysia; it also helps strengthen the news and industry relations between Malaysia and the US, potentially paving the way for further growth and cooperation in other sectors, such as the environment and electronics industries.
