TL;DR by CuriousCats.ai
US imposes 10% tariff on Malaysia
- USTR imposes a 10% tariff on Malaysia effective from July 24, 2026, following the expiration of a temporary Section 122 tariff.
- The USTR has released a list of exempted products from Malaysia, including oil palm, cut flowers, live orchids, and meranti wood.
- According to the Ministry of Investment, Trade and Industry (MITI), Malaysia is among 17 economies facing a 10% tariff, while others will incur a 12.5% tariff.
- Prime Minister Anwar Ibrahim expressed relief over the relatively low tariff rate and confirmed that Malaysia will continue tariff negotiations led by Minister Johari Abdul Ghani.
Background on US tariffs and Malaysia
- The US investigation under Section 301 revealed that Malaysia failed to enforce a ban on imports of goods produced with forced labour.
- The USTR considered Malaysia's commitments to implement and enforce laws prohibiting the importation of forced labour goods when determining the tariff rate.
CuriousCats Full Story
Key Insight
“MITI stated that Malaysia's lower 10% tariff rate under Section 301 was based on its commitments to enforce forced labor laws, with Minister Johari Abdul Ghani leading negotiations. Exempted products include oil palm, cut flowers, orchids, and meranti wood, while an ongoing Section 301 probe into excess capacity also involves Malaysia, and the country is eligible for a tariff-rate quota on US cotton and textile products.”
CuriousCats studied:
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Malaysiakini
Malaysiakini“Oil palm, cut flowers, live orchids and meranti wood are among specific products from Malaysia going into the United States that are exempted from the new 10 percent tariffs that kicked in today.”
Malaysiakini →2
The Star
The Star“Malaysia has been placed in the lower tariff tier under the United States' Section 301 measures related to forced labour, with a 10% duty taking effect from 12.01 am US time on July 24.”
The Star →3
Malay Mail
Malay Mail“Prime Minister Anwar Ibrahim affirmed that Malaysia will continue discussions with the United States regarding the newly imposed tariffs related to forced labor issues to ensure satisfactory outcomes for the country.”
Malay Mail →
