- Minister Johari Ghani stated that the 10% tariff will not dent Malaysia's competitiveness because other exporting nations face higher rates.
- Johari explained that Malaysia's position in the US market remains similar because the same 10% tariff applies to 16 other nations.
- Malaysia feared a higher tariff but received a lower rate due to forced labour import prohibition commitments under a pending reciprocal trade agreement with the US.
- The government is committed to enacting laws against forced labour within two years of the reciprocal trade agreement's ratification.
Minister Johari Ghani emphasized that the 10% tariff imposed by the US on Malaysian exports will not significantly impact the nation's competitiveness. He pointed out that this rate is among the lowest imposed by Washington concerning forced labour issues, which keeps Malaysia competitive in the US market.12345678
Johari noted that 16 other nations are also facing the same 10% tariff, while most economies are subjected to a higher 12.5% tariff. He stated, “From an export perspective, every nation that exports to the US is being hit by tariffs, and Malaysia is only being imposed with a 10% tariff. So our position (in the US market) is more or less the same.”
The 10% tariff was imposed due to Malaysia's alleged failure to effectively enforce a ban on imports linked to forced labour. However, Johari mentioned that Malaysia received a lower rate due to its commitments related to forced labour import prohibitions under its reciprocal trade agreement with the US, which is yet to be ratified. He expressed concerns that Malaysia could face a much higher tariff rate than its competitors if the situation does not improve.
Johari assured that the government is committed to enacting relevant laws against forced labour within two years of the reciprocal trade agreement’s ratification.
“Malaysia had feared facing a far higher tariff than competitors but received a lower 10% rate due to its commitments on forced labour import prohibitions under a pending reciprocal trade agreement with the US. The government is now committed to enacting laws against forced labour within two years of the agreement's ratification.”
