KUALA LUMPUR: The US tariff rate on Malaysia remains at 19% with exemptions given to 1,711 tariff lines, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (pic).
“The exemptions are given to some of Malaysia’s key exports such as palm oil, rubber products, cocoa, aircraft components and spare parts as well as pharmaceuticals, which collectively contribute up to US$5.2bil or 12% of total exports,” he said.
“There are no changes to our earlier commitment to the US. In fact, the US has given better access than what was offered before,” he told reporters after Malaysia and the United States inked the Agreement on Reciprocal Trade.
Tengku Zafrul said the Cabinet had approved a joint US-Malaysia statement on a wide-ranging reciprocal trade deal to expand market access and bolster supply chain resilience.
Under the deal, Malaysia will grant significant preferential market access for US exports, covering industrial goods such as chemicals, machinery, electrical equipment, metals and passenger vehicles, as well as agricultural products including dairy, poultry, beverages, rice and fuel ethanol.
In return, the United States will maintain a 19% tariff on Malaysian goods, as set under Executive Order 14257 and will apply zero tariffs to selected Malaysian products listed under a separate category for aligned partners.
