Malaysia is seeking clarification from the United States on the launch of a 100% tariff on semiconductor chips exported to countries that do not have manufacturing operations in the US.
Minister of Investment, Trade and Industry, Datuk Seri Tengku Zafrul Abdul Aziz told Parliament today that the ministry had contacted the US Trade Representative and the Department of Commerce to understand the implementation of the policy.
Tengku Zafrul expressed the hope that any changes in US trade policy, including exemption criteria, would be communicated and negotiated in advance to maintain Malaysia's position as a strategic trading partner.
The statement followed the announcement by President Donald Trump to launch a 100% tariff on all imported semiconductor chip products.
However, Trump clarified that the tariff would not be imposed on companies that have committed or are in the process of setting up manufacturing operations in the US.
Tengku Zafrul stated that there had been no official announcement yet and said that semiconductor products from Malaysia remained exempt from the 19 percent tariff, as set to take effect on August 8.
In 2024, Malaysia exported nearly RM120 billion worth of electrical and electronic (E&E) goods to the US, contributing about 20 percent of the country's total E&E exports.
Of this amount, semiconductor products alone contributed RM60.6 billion, highlighting the importance of the sector to Malaysia's trade with the US.
