SEVERAL of Malaysia’s strategic industries, including semiconductors, are expected to receive more favourable attention from the United States in forthcoming discussions under the Reciprocal Trade Agreement (RTA), according to Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz.
He said further talks would be held on sectoral tariffs, noting that under Section 232, the US believes additional discussions are needed for several key industries it considers vital.
“We need to look at the broader picture, particularly the 1,711 tariff lines which account for about 12 per cent of our total export value. At the same time, this could expand further as these products will later be exempted from the 19 per cent tariff,” Tengku Zafrul said in a post on X on Saturday.
“We have demonstrated through this agreement that we are a dependable and trusted supply chain partner, especially in their strategic sectors such as semiconductors, aerospace, pharmaceuticals and others,” he added.
Zafrul said the arrangement would help strengthen local industries involved in the US supply chain, noting that supply chain assurance is now a key aspect of global economic security.
He was responding to claims by some quarters that Malaysia’s tariff exemption agreement, covering around 1,700 product lines, would benefit American importers more than Malaysian exporters.
On 27 October, US President Donald Trump and Malaysian Prime Minister Datuk Seri Anwar Ibrahim signed the Reciprocal Trade Agreement, allowing up to 1,711 Malaysian products – including palm oil, rubber, cocoa, as well as certain pharmaceutical components and aerospace equipment – to be exported to the US at reduced tariff rates below 19 per cent. - November 9, 2025
