KUALA LUMPUR: The United States is not ruling out any possibilities that steeper tariffs may be slapped on some Asean nations if negotiations fail to deliver favourable results.
US trade representative Jamieson Greer said the US is still in the process of negotiating tariff deals with some Asean countries.
“What we are focussed on now are the negotiations. We are not focussed on putting out rounds of tariffs.
“That being said, if we are unable to reach agreements, then the tariff is the solution,” he told reporters after having a bilateral meeting with Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz on Friday (Sept 25).
Greer also said the global semiconductor industry is complex and the US is being very careful in addressing the international trade situation.
“We have to have the supply chain back in the US, but of course, Southeast Asia remains an important source for the semiconductor supply chain,” he added.
In August, US President Donald Trump said 100% tariffs will be imposed on semiconductor imports until a
Semiconductors exported from Malaysia to the US remain exempt from the 19% reciprocal tariff that took effect on Aug 8.
But, the exemption for semiconductor products is still subjected to an ongoing probe by the US under Section 232 of the Trade Expansion Act 1962 and tariffs could potentially be imposed depending on the outcome.
Last year, Malaysia exported about RM120bil worth of electrical and electronic (E&E) products to the US of which semiconductors made up RM60.6bil of that figure.
Last month, 19% tariffs were imposed by the US on Cambodia, the Philippines, Indonesia and Thailand.
Vietnam was given a 20% rate, Brunei (25%) and Singapore faced a mere 10% rate.
The worst affected were Laos and Myanmar where tariffs were set at 40%.
