Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. — Bernama
KUALA LUMPUR: Malaysian pharmaceutical products and semiconductors will be exempt from U.S. tariffs, the country's trade minister, Tengku Datuk Seri Zafrul Abdul Aziz said on Friday.
"At this time, exports of semiconductor and pharmaceutical (products) remain at 0% (tariff rate)," he said at a press briefing after the United States imposed a tariff of 19% on Malaysia's exports.
He said the levy on Malaysian goods would be effective from August 8.
Tengku Zafrul also said that there had been no agreement with the United States or other countries on the exclusive supply of rare earths.
"In fact, no such request has been made by the U.S.," he said.
Gaining access to rare earth metals has been a crucial part of U.S. trade negotiations, with rival China currently in control of 90% of global processing capacity. Critical minerals were also under discussion during U.S. negotiations with Indonesia.
Tengku Zafrul said Malaysia and the United States would release a joint statement on tariffs at the weekend.
The trade ministry said in a statement earlier on Friday that the tariff outcome came after sustained engagement by both countries and did not cross any of Malaysia's "red lines" or compromise its sovereign rights. - Reuters
