INTERACTIVE: What you need to know about Malaysia’s exports to the US, in 4 charts

The US imposes a 25% tariff on Malaysian goods starting August 1—KK SHAM/The Star

PETALING JAYA: The 25% tariff which the United States imposed on Malaysia will have far-reaching economic consequences.

The tariff, effective August 1, was stated in a letter posted on US president Donald Trump’s Truth Social, is 1% more than the 24% imposed previously and that was paused for 90 days.

In his initial response to the announcement, Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz said the rate was unexpected but that there is still time to negotiate with the United States.

Below are four charts explaining Malaysia’s trade with the US, based on information from the Department of Statistics Malaysia (DOSM), the International Trade Centre (ITC), and the United State Census Bureau.

 

 

The United States is Malaysia’s second-largest trading partner, with exports to the US totaling RM198.65bil, according to DOSM’s figures.

The balance of trade between Malaysia and the US has meanwhile narrowed slightly, from RM72.42bil in 2023 to RM72.39bil last year.

 

 

Electrical machinery and equipment are the biggest category of export items that Malaysia ships to the US, with US$23.73bil exported last year, according to ITC’s Trade Map data.

Industrial machinery, mechanical appliances and components came second at US$6.31bil followed by scientific, optical, and medical equipment (US$3.89bil).

 

 

According to figures from the US Census Bureau, Malaysia’s annual exports to the country has steadily grown from US$2.3bil in 1985 to hit a high of US$56.05bil in 2021.

The figures, which are on a nominal basis, dropped to US$46.1bil in 2023 before rising to US$52.49bil last year.

 

 

The US Census Bureau’s figures show that Malaysia’s monthly exports to the US dipped slightly in April this year to US$4.73bil compared to US$5.64bil in March.

However, exports rose again in May to US$5.03bil.