KUALA LUMPUR: Malaysia’s trade with the United States continues to grow strongly despite additional tariffs on some exports, with total trade rising 39.6% to RM378.70bil in the first nine months of this year, says Datuk Seri Johari Ghani.
The Investment, Trade and Industry Minister said exports to the US surged 69.1% to RM282.07bil from January to September, driven mainly by strong demand for electrical and electronics (E&E) products, particularly semiconductors, amid the rapid growth of artificial intelligence (AI) technology and data centres.
“A critical factor driving this growth was Malaysia’s strategic advantage in being exempted from additional US tariffs on most semiconductor and E&E products.
“The US decision underscores the dependence of its supply chains on the E&E sector, which accounts for about 64.2% of Malaysia’s total exports to the US semiconductors make up 44% of total E&E exports,” he said in a written parliamentary reply on Tuesday (Oct 27).
He was responding to Datuk Seri Amirudin Shari (PH-Gombak), who asked about the impact of US tariffs on Malaysian industries throughout 2026 and the alternative markets explored by the government to enable Malaysian micro, small and medium enterprises (MSMEs) to export their products.
However, Johari said exports of rubber gloves, furniture and medical devices to the US had declined.
The US market accounts for about 32% to 47% of Malaysia’s total exports of these products.
He said the ministry had conducted selected sectoral analyses to assess the actual impact on local industries, focusing on products for which the US is a major export market and which are subject to additional tariffs but are not covered by tariff exemptions.
“From January to September 2026, Malaysia’s rubber glove exports to the US fell by 1.6% to RM5.0bil, compared with RM5.1bil in the same period in 2025.
“Furniture exports also declined by 19.2% to RM3.77bil from RM4.67bil, while medical device exports decreased by 12% to RM8.74bil from RM9.93bil.
“This shows that although overall exports to the US continued to record positive growth, several key Malaysian industries have faced pressure to absorb US tariff costs or offer discounts to buyers to maintain their competitiveness, sustain exports and preserve access to the US market,” he said.
Johari said the ministry was pursuing greater market access and opening up new markets through various free trade agreements (FTAs), while exploring non-traditional markets in the Middle East, Africa, Latin America and South Asia to minimise exposure to external shocks and strengthen the resilience of the country’s trade.
He said exports of rubber gloves, medical devices and furniture to alternative markets had recorded strong growth in the first nine months of 2026 compared with the same period last year.
“Rubber glove exports surged to Oman by 712%, Brazil (84.6%), Sweden (80.8%), Denmark (48.1%), the Netherlands (43.7%), Estonia (34%) and Canada (18.4%),” he said.
Medical device exports increased by 206% to South Korea, 74.9% to Singapore, 65% to Sweden, 59.1% to Brazil, 43.9% to Turkiye, 26.6% to Canada and 5% to the United Kingdom.
Furniture exports also recorded strong growth in Guyana (586.1%), Taiwan (140%), Switzerland (135.4%), Viet Nam (99%) and New Zealand (68.3%).
Johari said the ministry would continue to monitor developments in US trade policy and take proactive measures to protect Malaysian exporters and minimise the impact of tariffs on MSMEs.
