A TOTAL of 1,711 tariff lines have been exempted from the United States (US) import tariff at a rate of 19 percent which will take effect within 60 days.
Minister of Investment, Trade and Industry (MITI), Datuk Seri Tengku Zafrul Abdul Aziz said that Malaysia has received better commitments from the US through the agreement.
“In fact, the US has offered better and more secure access to their market.
“So, actually, what was sealed is better than what was announced before,” he told a press conference today.
Tengku Zafrul added that the US is one of Malaysia’s largest trading partners and an important market for key exports.
“The exemption is 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.
"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 said.
Previously, US import tariffs for Malaysia were reduced from 25 percent to 19 percent.
Tengku Zafrul also said that no aspect of the agreement between the United States and Malaysia on reciprocal trade will compromise national sovereignty
He said that Malaysia would never endorse or sign any agreement that undermined the country's sovereignty.
"No, it will not affect our national sovereignty. If you look closely at the agreement, it respects both nations' sovereignty," he said.
The exempted items, he said, are worth US$5.2 billion and account for 12 per cent of the country’s total exports.
Tengku Zafrul said the Trump administration has also agreed to give due consideration to semiconductor exports from Malaysia under Section 232 of the US Trade Expansion Act.
The agreement was signed by US President Donald Trump and Prime Minister Datuk Seri Anwar Ibrahim at the sidelines of the 47th Asean Summit and Related Summits. - October 26, 2025
