US tariff cut benefits Malaysia's export sector, says Chow

The Sun

20 hours ago

GEORGE TOWN: The United States' decision to lower tariffs on Malaysian imports from 25 per cent to 19 per cent is a positive step for the country's export sector, particularly in Penang, where industries like electrical and electronics (E&E), manufacturing, and medical devices thrive.
Chief Minister Chow Kon Yeow said the adjustment aligns Malaysia with other ASEAN nations, fostering fairer regional trade conditions. 'This is a welcome relief for our export sector, especially in Penang. The revised tariff now matches those of neighbouring ASEAN countries, levelling the playing field,' he told reporters after launching the National Month and Penang-level Jalur Gemilang ceremony.
The US initially announced a 25 per cent tariff on all Malaysian goods entering the country, effective August 1, 2025, but later revised it to 19 per cent. Chow noted that while the reduction is beneficial, Malaysia still faces competition from countries with lower or zero tariffs under preferential trade agreements.
'We await further details from the USTR and Federal Government on which sectors will be impacted or gain advantages,' he said. The Penang government has urged Putrajaya to continue negotiations for better tariff terms to sustain Malaysia's global supply chain competitiveness and attract high-value investments.
Chow also highlighted US President Donald Trump's potential attendance at the upcoming ASEAN Summit as a positive signal for resolving trade disputes through dialogue. 'This tariff cut exceeds expectations and renews optimism for Malaysia's trade future,' he added. - Bernama