Malaysia Us Deal Rm21 9b Exports Exempt From Reciprocal Tariffs

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Up to 1,711 Malaysian export products to the United States will enjoy tariffs lower than 19 percent under the Agreement on Reciprocal Trade signed between Malaysia and US yesterday, said Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz.
He said the list includes palm oil, rubber, cocoa, as well as some pharmaceutical components and aerospace equipment.
“These exports collectively amount to about US$5.2 billion (RM21.96 billion) of our exports to the US, which is about 12 percent of our total exports,” he told a press conference in Kuala Lumpur yesterday.
Zafrul said the lower tariff will take effect within 60 days after both countries exchange the documents as part of the legal process.
In a joint statement yesterday, Kuala Lumpur and Washington said the US has identified products listed under Annex III to Executive Order 14346, dated Sept 5, 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a zero percent reciprocal tariff rate.
It also said the US has committed to maintain at 19 percent the reciprocal tariffs first outlined in Executive Order 14257, dated April 2, 2025, as amended, on originating goods of Malaysia.
‘Not disappointed’
Asked if Malaysia is disappointed about this, Zafrul replied: “No, we are not disappointed. In fact, we are satisfied because what was offered before remains for Malaysia. But what we are quite glad about is that we didn't have to backtrack on any of what we agreed on before.
“And we are also happy that on some of the tariff lines, we managed to get more than what was discussed before.”
According to Zafrul, the agreement inked yesterday contains the same points previously shared by the Investment, Trade and Industry Ministry in Parliament, and the signing marks the conclusion of the negotiations earlier, making the deal official.
“As I stated before, this agreement has already been agreed upon before, and this is the official agreement that has been done in writing.
“In fact, the US has given better access compared to what was before, and also (along with) some commitments to access to their market. So, what has been given to us was better than what was agreed verbally or announced before,” he said.
Asked if he is confident that the deal is ”final” without further change, Zafrul said: “For us, an agreement is an agreement, and we hope that this holds. And, of course, if it changes, we hope that it is for the better.”
- Bernama

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