PETALING JAYA: Malaysia’s exporters are expected to receive a tailwind in trade as the United States begins accepting tariff refund claims on April 20, says an economist.
Centre for Market Education chief economist Alvin Desfiandi said this is because the United States remains Malaysia’s second-largest export destination, accounting for about 15% of total exports.
He noted that the move will likely be noticeable in the electrical and electronics (E&E) and machinery sectors, as they make up roughly 70% of Malaysia’s exports to the United States.
“This year, the major tech companies in the United States are expected to invest US$650bil (RM3.1 trillion) in AI infrastructure.
“Given this ongoing AI boom, I think the most obvious sectors are E&E and machineries.
“Together, these sectors contribute around 70% of Malaysia’s total exports to the US,” he said, when contacted yesterday.
US Customs authorities recently announced that they will begin accepting requests from importers seeking tariff refunds on April 20.
This comes after the US Supreme Court invalidated US President Donald Trump’s sweeping global tariffs imposed on a slew of nations in February this year.
US Customs and Border Protection said the refund process will initially handle only certain unliquidated entries or those liquidated in the past 80 days.
Businesses typically pay an estimated tariff amount at the time of import, with Customs authorities determining the final amount later.
Economist Prof Geoffrey Williams said the biggest challenge for exporters is the strong ringgit and not merely the issue of the US tariffs.
Efforts to reduce US tariffs and non-tariffs issues under the Agreement on Reciprocal Trade (ART) between Malaysia and the United States had been abandoned, he noted.
Signed on Oct 26 last year, Malaysia considered the ART “void and not in effect” following the US Supreme Court decision against Trump’s authority to impose tariffs.
“The US Customs may have opened applications for refunds but unless the claim is clear and uncomplicated, it could be months or years before repayments are made.
“Trump already indicated that the refund process would not be easy or quick,” he said.
The impact on Malaysian exporters, Williams said, depends on who paid the tariff.
“It is likely that in many cases, the US companies buying Malaysian products paid the import tax.
“It is US firms that will claim a refund and they are the ones to benefit, not Malaysian exporters, in most cases,” he explained.
“So the refund will go to US companies, not Malaysian companies,” he said, adding that tariffs should not be considered as bad for Malaysian exporters.
Williams said US consumers are the ones absorbing the tariffs.
In 2025, the trade surplus with the United States surged 23.9% in dollar terms while Malaysian exports surged 13.7%, he said.
“The higher ringgit held back profits because sales in dollars are repatriated in ringgit at a lower rate.
“The tariffs did not harm US-Malaysia trade. In fact, there was a huge boost,” Williams added.
