Malaysia awaits US response on excess capacity after concluding forced-labour tariff talks, says Johari Ghani

Shah Alam, August 9 — Malaysia is eagerly awaiting the United States' response to its concerns over industrial excess capacity following the completion of the forced-labour component of its tariff talks with the US, announced Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. Delivered at the ACCCIM's 80th annual general meeting here, Johari clarified that while Malaysia has finalized the forced-labour aspect, the issue of excess capacity remains unresolved. "We are eagerly awaiting a response and will provide an update upon receipt," he stated.

The US imposed an additional 10 percent Section 301 tariff on Malaysian goods, starting July 24, following an investigation into Malaysia's import rules linked to forced labor. Yet, a separate investigation into structural excess capacity in the steel sector remains ongoing. Under the Malaysia-US Agreement on Reciprocal Trade, Malaysia is obligated to prevent imports made with forced labor and address global excess capacity in the steel industry.

Johari also noted that Malaysia's exports to the US continue to grow, but cautioned against a faster increase in imports, which could erode the country's trade surplus.