JOHOR BARU: The shifting trade dynamics between the United States and China may present new openings for Malaysian entrepreneurs, especially in the area of low-value exports.
Dr Mohd Zulariffin Md Maarof (pic) of Universiti Tun Hussein Onn Malaysia (UTHM) said the de minimis rule specifies that goods valued at or below US$800 (RM3,580) going into the United States are exempt from import duties.
“United States President Donald Trump signed an executive order that revoked this privilege for goods from China and Hong Kong,” said Mohd Zulariffin, who is the university’s entrepreneurship program coordinator.
He added that the trade war between China and the United States has created space in the American market that others could step into.
He said there was potential for Malaysian products in the US market which Malaysian entrepreneurs should explore through platforms like eBay, Amazon and Etsy.
Malaysian entrepreneurs should make the most of this golden opportunity, especially as the US dollar-to-ringgit exchange rate was becoming more favourable, said Mohd Zulariffin, who is also a senior lecturer in mathematics.
He added that the 24% tariff or any rate that may be imposed by the American administration on Malaysian physical products does not apply to items under the de minimis rule.
However, larger exporters and firms would need to be more strategic in selecting products that were exempt or subjected to lower tariffs.
“They can use HS Codes, which offer lower import values, and look for products with higher profit margins and lower tariff rates in the US market. Goods such as electronics from Malaysia are still not taxed by the United State.
“Entrepreneurs should also explore other markets such as the European Union, Germany, Australia, and the Middle East, via Amazon, eBay and Etsy so that we are not overly dependent on the US market,” he said.
