KUALA LUMPUR (July 24): US President Donald Trump imposed tariffs of between 10% and 12.5% on 60 economies, including Malaysia, over forced labour imports allegations.
For Malaysia, the duty is 10%. The tariffs imposed under Section 301 investigations charge that US trading partners failed to impose a ban on import of goods produced with forced labour, according to a statement from the US Trade Representative ambassador Jamieson Greer.
“Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains,” Greer said. “The United States has had a forced labour import ban for nearly a century, “and rigorously enforces it; it’s well past time for our trading partners to do the same.”
The move is Trump’s latest effort to rebuild his "Liberation Day" tariff wall in April 2025 struck down by the US Supreme Court earlier this year. Trump immediately imposed a 10% global tariff rate after the legal setback, which forced his administration to issue refunds.
The latest tariffs are effective 12.01am eastern time, or 12.01pm Malaysia time on Friday, when the existing duties expire though they won’t apply to goods already loaded onto a vessel and in transit.
Apart from Malaysia, countries levied 10% rate are Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the UK.
Trump also imposed tariffs of up to 12.5% for certain goods of the European Union, Singapore, Taiwan, Japan, Korea, as well as other investigated economies.
Section 301 of the Trade Act of 1974 allows the Trade Representative to investigate and impose retaliatory tariffs or sanctions for foreign trade practices that harm US commerce.
The investigations were announced in March, which found that Malaysia was among the countries without a specific law to screen and ban goods and raw materials made with forced labour. In June, Malaysia said it was actively working to address the concerns raised by the Americans.
On Friday, Malaysia’s Ministry of Investment, Trade and Industry said it will continue talks with the US following the implementation while another investigation related to excess capacity remains ongoing. The probe, also under Section 301, alleges excess manufacturing capacity in the electronics, machinery and steel sectors which resulted in Malaysia's large or persistent goods trade surpluses with the US.