Tariff exemptions cover 12% of exports to US, says Tengku Zafrul
Malaysia has secured tariff exemptions from the US on key exports including palm oil, rubber and cocoa, aerospace equipment and pharmaceuticals, investment, trade and industry minister Tengku Zafrul Aziz said today.
“These exports collectively amount to about US$5.2 billion, or roughly 12% of Malaysia’s total exports to the US,” he told a press conference on the Malaysia-US reciprocal trade agreement signed this afternoon.
The US will maintain a 19% tariff on Malaysian goods, with certain products granted a 0% rate, according to a joint statement issued after the signing.
Under the agreement, a total of 1,711 products exported to the US will enjoy tariffs lower than 19%.
It was previously reported that Washington had agreed to consider zero tariffs on selected commodities, as well as automotive and aerospace parts, at Malaysia’s request during earlier negotiations.
Tengku Zafrul said Malaysia’s commitments under the deal will also be taken into account by Washington in decisions made under Section 232 of the US Trade Expansion Act of 1962, which could affect products such as semiconductors.
He also said the agreement would benefit Malaysian industries by lowering import tariffs on US goods, making high-quality products such as medical equipment, IT hardware and machinery parts more affordable for businesses and consumers.
“For example, various imports of advanced machinery, aerospace components, and automation tools from the US can be used as inputs to help Malaysian manufacturers improve efficiency and move up the industrial value chain, in line with the targets of the national industrial master plan,” he said.
