Malaysia’s semiconductor exports remain exempt from US tariffs, says Johari Ghani

Malaysia continues to avoid tariffs on its semiconductor exports to the United States, as confirmed by Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani during a press conference today. Johani stated that Malaysia has not received any indications that the US will impose tariffs on its semiconductor exports. The negotiations with the US under Section 301 covered four issues: forced labor, excess production capacity, environmental standards, and government subsidies.

Johani explained that Malaysia is not subject to the environmental standards or government subsidies, as Malaysia is already compliant. The forced labor issue has been finalized, with Malaysia facing a 10% rate compared to 12.5% for other countries. However, the excess capacity issue remains unresolved. Johani clarified that any excess capacity is likely associated with third countries, and Malaysia would request clarification from the US regarding the specific countries contributing to the excess capacity.

The EU imposes strict environmental requirements on its trading partners, but as long as Malaysia can comply, it is not a concern for Malaysia. The EU-Malaysia Business Day 2026, held in conjunction with the Selangor International Business Summit, aimed to strengthen business ties and unlock investment opportunities in high-growth sectors such as advanced manufacturing, green transition, digitalization, and logistics.