US tariffs on Malaysia remain at 19% but with some exceptions

The United States and Malaysia have signed a new trade agreement, with the tariff on Malaysian goods imported into the US remaining at 19% with some exemptions. So, what should you know about it?

For your information, the agreement was signed by President Donald Trump and Prime Minister Dato' Seri Anwar at the Kuala Lumpur Convention Centre yesterday during the 47th ASEAN Summit and Related Summits. 

The tariff rate remains the same

Additionally, the 19% tariff remains the same as the new rate announced by Trump in September. A total of 1711 Malaysian-made goods exported will now be subject to lower tariffs. The exemptions involve exports to the US worth USD5.2 billion (~RM21.9 billion), equivalent to 12% of the country's total exports.

Besides that, products specified in Annexe III to Executive Order 14346 dated September 5, 2025, Potential Tariff Adjustments for Aligned Partners will be subject to 0% tariff.

Among those receiving zero tariff relief are chemicals, pharmaceutical products such as ibuprofen, tropical fruits including durian, semiconductors, aerospace equipment, electronic goods, palm oil, rubber, timber and many more.

Malaysia to provide preferential market access to the US

Malaysia, on the other hand, expressed its commitment to providing preferential market access to US industrial and agricultural goods such as passenger vehicles, poultry, dairy products, pork, steel, processed foods and facilitating facility registration and halal certification.

In addition, Malaysia will not impose a digital services tax that discriminates against US companies, strengthen intellectual property protection, customs facilitation and support cross-border data transfers and impose a moratorium on customs duties for electronic shipments.

Moreover, Malaysia has previously confirmed commercial agreements for the purchase of 30 Boeing aircraft by Malaysia Aviation Group, LNG imports worth up to $3.4 billion, and the purchase of semiconductors and data centre equipment worth $150 billion.

According to the Office of the United States Trade Representative, the trade deficit between America and Malaysia is the 14th largest, with Malaysia exporting goods worth $24.9 billion (~RM105.7 billion) throughout 2024.

Source: Tech Nave