KUALA LUMPUR (Oct 27): Deputy Minister of Investment, Trade and Industry Liew Chin Tong said that although semiconductors are not included in the newly formalised US trade deal, Malaysia’s commitments under the agreement will influence future US decisions on semiconductor tariffs.
“Any future decisions by the US Department of Commerce under Section 232 of the US Trade Expansion Act, particularly those involving semiconductor products, will take into account what has been agreed upon under this deal in a holistic manner,” Liew told the Dewan Rakyat during the oral question session on Monday.
US President Donald Trump had previously threatened to impose a 100% tariff on semiconductor imports from countries without US-based manufacturing, pending the outcome of an ongoing investigation by the US Department of Commerce.
Currently, semiconductor products exported from Malaysia to the US remain exempt from the 19% reciprocal tariff, which took effect on Aug 8.
In 2024, Malaysia exported nearly RM120 billion worth of electrical and electronic (E&E) products to the US, accounting for about 20% of the country’s total E&E exports. Of that amount, semiconductor products made up RM60.6 billion.
Meanwhile, Liew said the new reciprocal trade agreement offers Malaysia better access to the US market, without altering any previous commitments between the two nations.
The agreement includes 1,711 tariff lines — covering key export commodities such as palm oil, rubber, cocoa, aircraft components and parts, and pharmaceuticals — with some tariffs fully exempted and others reduced below 19%.
“The newly signed deal was previously approved by the Cabinet and announced by both the Prime Minister (Datuk Seri Anwar Ibrahim) and the Minister of Investment, Trade and Industry (Tengku Datuk Seri Zafrul Aziz). It is not a new agreement, but one that offers Malaysia better market access compared to what was previously announced,” Liew said.
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Zafrul: 1,711 Malaysian export products to US to enjoy tariffs below 19%
Zafrul: Reciprocal pact with US will not affect Malaysia’s sovereignity
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