Electrical Workers Union Warns Of Downsizing Due To Us Tariff

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The Electrical Industry Workers’ Union (EIWU) has expressed unease over the 24 percent tariff imposed by the US on imported Malaysian products, cautioning that the move could result in serious socio-economic concerns.
ADSIt noted that the unilateral decision places significant strain on local companies operating within the electrical and electronics (E&E) industry.
The union said the move also poses a grave threat to long-term job security for thousands of local workers nationwide.
“In addition to the immediate consequences on trade volumes, these (tariff) measures are likely to compel companies to implement aggressive cost-cutting strategies,” EIWU said in a statement today.
It highlighted that such strategies could potentially involve workforce reductions and other actions detrimental to workers’ rights and welfare.
“Alarmingly, two companies represented by EIWU have announced plans to cease operations by the end of 2025, affecting nearly 2,000 workers, most of whom are aged 45 and above,” it added.
Besides possible downsizing across the sector, the union said the tariffs are also expected to dampen demand for Malaysian-made products, resulting in order cancellations and production slowdowns.
Several manufacturers in the electrical products segment, it said, have already voiced strong opposition to the tariff, with their problems compounded by existing market challenges such as export market saturation and high global inflation impacting consumer spending.
Escalating operational costs, including the increased minimum wage, also contributed to eroding financial sustainability and operational resilience, EIWU said.
“EIWU also urges all industry employers to ensure transparent communication with employees and to collaborate constructively with the unions to uphold fair treatment of workers during this challenging period,” it said.
E&E industry
As one of Malaysia’s largest trade unions representing over 10,000 workers from more than 40 companies, the EIWU called on the government, particularly the Investment, Trade, and Industry Ministry (Miti), to act with urgency.
It said Miti must immediately initiate diplomatic engagements with the US to pursue tariff exemptions or relief mechanisms while adopting a firm position against the policy in relevant international trade forums.
ADSThe E&E industry remains one of Malaysia’s primary export drivers, with the US being a key trading partner.
In 2023 alone, Malaysia’s E&E exports to the US totalled RM161.3 billion, accounting for 62.80 percent of Malaysia’s total exports to the country.
Last week, Trump announced that all imports into the US would be slapped with a baseline 10 percent tariff, which came into effect on April 5.
Starting April 9, the US will impose an individualised reciprocal higher tariff on the countries with which it has the largest trade deficits.
However, certain goods will be exempted from the tariffs, such as copper, pharmaceuticals, and semiconductors. - Mkini

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