KUALA LUMPUR (Feb 17): US tariffs on steel and aluminium imports are expected to have little impact on Malaysia, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.
Malaysia “currently has a moratorium on any new plants or expansion of steel and aluminium” given the current overcapacity. Coupled with the country’s small export volume to the US, the tariffs are unlikely to have a significant effect, Zafrul told the press on the sidelines of the China Conference Southeast Asia 2025, hosted by the South China Morning Post.
“Whatever happens in the US will not have a major impact,” he added. “Malaysia is not a major steel exporter, and our biggest export to the US is the electrical and electronics (E&E) sector.”
Malaysia exported about RM2.45 billion worth of iron and steel products to the US, representing about 1.2% of Malaysia’s total exports to the US in 2024, according to data from Malaysia External Trade Development Corporation (Matrade).
However, concern is growing over the possibility of a flood of cheap imported steel to Malaysia, which would hit local steel players. This will add challenges to the domestic steel industry.
Last week, the Malaysian Iron and Steel Industry Federation urged the government to strengthen anti-dumping measures, warning that the US’ 25% tariffs could trigger a surge of redirected steel products into Malaysia, exacerbating trade diversion concerns.
Earlier this month, the Ministry of Investment, Trade and Industry launched a probe into alleged dumping of flat-rolled steel products from China, South Korea, and Vietnam, following an expansion in anti-dumping duties on certain steel wires from China. It is not known when the outcome will be announced.
The US is imposing a flat 25% duty on all steel and aluminium imports — up from the previous 10% — without exceptions or exemptions. This move eliminates previous carve-outs for certain countries, quota agreements, and product-specific exclusions.
The tariffs will apply to most imports from Canada, Brazil, Mexico, South Korea, and other countries that had previously enjoyed duty-free access under exemptions.
In January, Vietnam imposed anti-dumping duties on certain steel wires originating from China, Malaysia and Thailand. In October 2024, Indonesia slapped duties on some iron products from China, South Korea, and Taiwan.
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