Govt challenges US excess-capacity concerns as 100% chip tariff threat looms
THE Government will seek to have itself removed from any list of countries flagged by the United States for excess production capacity, as Washington weighs a proposed 100 per cent tariff on imported semiconductors. Investment, Trade and Industry Min...
The Malaysian government has challenged US concerns over excess semiconductor production capacity as Washington considers imposing a 100 per cent tariff on imported chips. Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani stated that Malaysia has not received any indications that the US would impose tariffs on its semiconductor exports.
The issue of excess capacity remains the only outstanding matter in Section 301 trade talks, alongside discussions on forced labor, environmental standards, and government subsidies. Johari emphasized that Malaysia would request a list of countries deemed to have excess capacity, arguing that any such problem could originate from third countries.
He noted that Malaysia complies with environmental standards and does not subsidize companies for international exports. The proposed 100 per cent tariff on semiconductors by US President Donald Trump has raised concerns about potential trade barriers for chip-exporting economies like Malaysia.
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