The United States government under President Donald Trump has imposed a 24% tariff on Malaysian goods entering the country, effective 9th April 2025. This is part of the government’s reciprocal tariff policy on multiple countries, ranging from 10% to 50%.
President Trump said the move is part of a wider effort to address structural trade imbalances, which has been identified as a threat to its economic and national security. He said that many US trading partners have imposed significantly higher tariff rates compared to the US which is among the lowest globally. He added that the discrepancy makes it harder for US manufacturers to compete in foreign markets, while foreign products benefit from lower tariffs when entering the US market.
According to the US government, Malaysia imposes a 47% tariff charge to the US and in return, they are giving a “Discounted” Reciprocal tariff on Malaysia at 24%.
Here’s the list of Reciprocal Tariff imposed by the US government which will begin on 9th April:
- Lesotho: 50%
- Cambodia: 49%
- Laos: 48%
- Madagascar: 47%
- Vietnam: 46%
- Myanmar (Burma): 45%
- Sri Lanka: 44%
- Falkland Islands: 42%
- Syria: 41%
- Mauritius: 40%
- Iraq: 39%
- Serbia: 38%
- Guyana: 38%
- Botswana: 38%
- Bangladesh: 37%
- Thailand: 37%
- Liechtenstein: 37%
- Bosnia and Herzegovina: 36%
- China: 34%
- North Macedonia: 33%
- Switzerland: 32%
- Taiwan: 32%
- Angola: 32%
- Fiji: 32%
- Indonesia: 32%
- Libya: 31%
- South Africa: 31%
- Moldova: 31%
- Algeria: 30%
- Pakistan: 30%
- Nauru: 30%
- Tunisia: 28%
- Kazakhstan: 27%
- India: 27%
- South Korea: 25%
- Japan: 24%
- Brunei: 24%
- Malaysia: 24%
- Côte d’Ivoire: 21%
- Namibia: 21%
- European Union: 20%
- Jordan: 20%
- Nicaragua: 19%
- Malawi: 18%
- Zimbabwe: 18%
- Philippines: 18%
- Mozambique: 16%
- Norway: 16%
- Israel: 17%
- Zambia: 17%
- Venezuela: 15%
- Nigeria: 14%
- Equatorial Guinea: 13%
- Chad: 13%
- Cameroon: 12%
- Democratic Republic of the Congo: 11%
- United Kingdom: 10%
- Australia: 10%
- Brazil: 10%
- Singapore: 10%
These tariffs are expected to remain until the US determines that the trade terms have become more reciprocal. If any trading partner retaliate against the US through import duties on US exports or other measures, President Trump warned that he will further increase or expand the scope of duties imposed under the order.
However, there are some exemptions for the reciprocal tariff as outlined in Annex II. This includes Semiconductors, Pharmaceuticals, Cooper, Steel and Aluminium, Energy and Energy Products, Automobiles and Automotive Parts which are subjected to additional duties under Section 232, and articles from Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA) which are subject to different treatment.
Shortly after the announcement, tech companies were hit the hardest with Apple sliding by 6.99%, while Nvidia stocks dropped by 5.68%. This shouldn’t come as a surprise as majority of tech companies manufacture their products in China and Taiwan.
NASDAQ has recorded a drop of 4.0% which is said to be the biggest single-day loss since 2022.
Malaysia has been trying to attract more semiconductor investments into the country. Responding to the latest developments, The Ministry of Investment, Trade and Industry (MITI) says it is viewing the 10% tariff hikes and reciprocal tariff announcement on Malaysian exports to the US seriously and is engaging with the US authorities to seek solutions that will upload the spirit of free and fair trade.
The National Geoeconomic Command Centre (NGCC) will evaluate the impact of the US government announcement and will consider a comprehensive and multi-pronged strategy to mitigate the effects of these tariffs on Malaysia’s economy and industries.
[ SOURCE, IMAGE SOURCE ]
