New US tariffs on several home appliances containing iron officially took effect on Monday, following an announcement by the country's federal government.
This move is a continuation of President Donald Trump's decision to double import duties on iron and aluminum to 50 percent. Also listed are eight metal derivative products that are now also subject to high tariffs.
According to an official notice published in mid-June, among the products affected include refrigerators, dryers, washing machines, dishwashers, stoves, ovens and food waste disposal machines.
The duty rate will be assessed based on the iron content in each product.
Analysts have warned that the sudden increase in tariff rates has the potential to increase inflationary pressures and slow US economic growth.
However, the impact is still under control for now, following the initial actions of major companies that have increased stock purchases before the official implementation of the tax.
Malaysia is also at risk of being affected by this policy, as the country is one of the major suppliers of electrical and electronic (E&E) products containing iron components to the US market.
Products such as refrigerator and washing machine parts, whether exported directly or through regional supply chains, are now exposed to the risk of duties that could affect competitiveness in the global market.
The implementation of the warning-button tariffs has sparked concerns among other exporting countries to race to reach a trade agreement with Washington, to avoid the burden of higher tariffs.
With the deadline for negotiations set for early July by the Trump administration, pressure is mounting on producing countries including Malaysia to accelerate their bilateral negotiations or risk being caught up in a new wave of increasingly aggressive US trade protectionism.
