Half of Malaysia’s E&E exports to US at risk of 24% reciprocal tariff — Zafrul
KUALA LUMPUR (April 7): Half of Malaysia’s electrical and electronics (E&E) exports to the US are at risk of being hit by the recently announced 24% reciprocal tariff, according to Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He explained that 60% of Malaysia’s exports to the US comprise of E&E products. Half of the E&E products are made up of semiconductors — exempted from US’ tariff — while the other half are non-semiconductors.
“So, only 30% of [Malaysia’s] exports to the US are exempt,” Zafrul noted at a press conference on Monday.
Last week, US President Donald Trump shellshocked the global economy with an executive order, implementing broadbased “reciprocal tariffs” on trade partners. Malaysia was hit with a 24% tariff. The reciprocal tariff policy is effective April 9.
In 2024, Malaysian exports to the US soared 23.2% year-on-year to a new record high of RM198.65 billion. Malaysian imports from the US surged 42.1% to RM126.26 billion.
Zafrul noted that most of these E&E exports from Malaysia to the US are from US companies.
“US companies that are exporting to the US from Malaysia are exporting intermediate goods. The finished goods are being produced in the US,” he noted.
Having said that, Zafrul highlighted that local companies do supply to these US companies based in Malaysia.
“So, we have to look at the impact to the supply chain, and how it impacts Malaysian industries and companies.”
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