Malaysia must act now as 10pc US tariff not guaranteed ceiling, says industry expert

Malaysia should not view the 10 percent US tariff on its goods as a fixed limit, according to industry expert Datuk Seri R. Jeyenderan. The US could reconsider the rate if it is unhappy with Malaysia's efforts to address its concerns, Jeyenderan warned. While the current rate offers some relief compared to potential higher tariffs, exporters must remain vigilant as the US may take additional action based on the outcome of its investigations.

The issue is especially critical given the ongoing US investigation into structural excess capacity involving Malaysia and several other countries. The US is expected to announce its findings from the investigation within three to four weeks. Malaysia is among 17 economies subjected to the lower 10 percent tariff, while the remaining economies face a 12.5 percent tariff.

Jeyenderan emphasized the importance of strong transshipment controls and traceability in Malaysian products to defend against US concerns over goods moving through third countries. He urged the Investment, Trade and Industry Ministry and Customs Department to gather verified industry data, audit cargo movements, and demonstrate effective enforcement of forced-labor import restrictions.

Building a clear and documented position from authorities would help reduce uncertainty among businesses involved in petroleum and maritime trade, Jeyenderan concluded.