KUALA LUMPUR (April 7): Malaysia is seeking clarification from the US over the basis of a 24% retaliatory tariff on its exports, denying claims that the country imposed a 47% tariff on US goods, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“We don't agree with the basis for calculating this tariff, and we are seeking clarification,” Zafrul said at a press conference in regard to the US tariff on Malaysia.

The minister said that the actual average tariff applied to US imports into Malaysia is 5.6%, based on the simple average most favoured nation (MFN) applied rate.

According to him, the US ambassador visited the Ministry of Investment, Trade and Industry (Miti) earlier to present the US' tariff computation.

“This morning, an ambassador of the US came to Miti, and [we] received clarification on how this number was derived. This inaccurate basis for calculation has resulted in Malaysia being imposed the retaliatory tariff of 24%,” he said.

Miti contends that the 47% figure stems from a calculation based on Malaysia's trade deficit with the US, rather than on reciprocal tariff rates.

Last week, US President Donald Trump announced a 24% tariff on goods imported from Malaysia effective April 9, in a sweeping trade policy hitting all of the US' trading partners. However, some goods, such as semiconductors, will be exempted.

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