JOHOR BARU: The newly revised 19% tariff imposed by the United States on Malaysia is not expected to impact the competitiveness of the nation's commodities in global markets, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He noted that the tariff remains competitive compared to other Asean countries, including Indonesia, which also faces the same rate.
"The 19% tariff imposed by the US on Malaysia is among the lowest in Asean countries, and even Indonesia, the world’s largest palm oil producer, is subject to the same tariff rate," he explained.
"In the context of palm oil, Indonesia is the largest producer and we are number two, but Indonesia is also subject to 19% like Malaysia, so there is no problem," he added.
Johari made these remarks at a press conference after officiating the Pasir Gudang Umno division annual general meeting.
He was responding to queries about whether the 19% tariff would affect the country’s commodities on the international stage.
It was previously reported that Malaysia will now face a 19% tariff on exports to the US, reduced from the previous 25%, as per an executive order signed by US President Donald Trump.
The new tariff structure takes effect in seven days and applies to goods entering the US for consumption, with limited exceptions for shipments already in transit.
Signed on July 31, 2025, the order amends Executive Order 14257 and imposes revised ad valorem duties on multiple trading partners, including all major Asean nations.
Under the latest tariff list, Malaysia, Thailand, Indonesia, the Philippines and Cambodia each face a 19% rate.
