Malaysia has secured a reduced US tariff rate of 19% through substantial trade agreements valued at over US$240 billion, as announced by Trade Minister Tengku Zafrul Aziz in Parliament. The comprehensive package includes US$150 billion in semiconductor and technology procurement, a US$19 billion Boeing aircraft deal, and US$70 billion in Malaysian investments in the US, along with commitments for coal, LNG, and telecommunications equipment purchases. In return, Malaysia will reduce duties on 98.4% of US imports and ease restrictions on US tech companies.
The new tariff rate aligns Malaysia with most ASEAN nations, while protecting an estimated 100,000 jobs potentially at risk from trade disruptions. While semiconductors currently enjoy tariff exemption, they remain under US national security review. Notably, the Boeing aircraft purchase was clarified as part of a pre-existing fleet renewal strategy rather than a tariff response. The US remains Malaysia’s largest export destination, with exports worth RM198.7 billion in 2024, and it continues to be a significant source of foreign direct investment, at RM32.8 billion.
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