Malaysia to discuss sectoral tariffs with US at Asean summit, state media reports
Laos and Myanmar have been hit with a 40% rate, while Singapore has a 10% tariff
[KUALA LUMPUR] Malaysia will hold talks with the US secretary of commerce on sectoral tariffs, including on semiconductors, during a meeting of the Asean regional bloc next week, Malaysian state media reported on Wednesday (Oct 15), citing the trade minister.
US President Donald Trump’s administration in August imposed a tariff of 19 per cent on Malaysian exports to the United States, though items such as semiconductors are currently exempt pending a US national security probe.
Trump in August proposed a 100 per cent levy on imported chips, though he said that it would not apply to companies that already had a manufacturing footprint in the United States or planned to build one.
Malaysia, the world’s sixth-largest exporter of semiconductors, has warned that any removal of tariff exemptions on its semiconductor exports by Washington could hurt its competitiveness and strain supply networks.
Trade Minister Tengku Zafrul Aziz said that he will hold discussions with US Commerce Secretary Howard Lutnick on tariffs for semiconductors and other sectors, which have yet to be finalised, state news agency Bernama reported.
“I will hold discussions with Lutnick. He will also be attending the Asean Leaders Summit next week,” he said, referring to a meeting of leaders of the Association of South-east Asian Nations set to run from Oct 26 to Oct 28 in the Malaysian capital of Kuala Lumpur.
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Tengku Zafrul said that Malaysia and the United States were currently negotiating a final tariff agreement, which is expected to be signed by both countries at next week’s meeting.
Malaysia’s agriculture, industrial, and manufacturing sectors, as well as those involved in trade and investment with the United States, are likely to benefit from the agreement, he added.
Several other countries are also expected to sign trade agreements with Washington at the upcoming Asean meeting, he said, without elaborating. US tariff rates for export-reliant South-east Asia have been set at 19 and 20 per cent for most of the region.
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Laos and Myanmar have been hit with a 40 per cent rate, while Singapore has a 10 per cent tariff. REUTERS
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