Penang CM hails US tariff cut as timely
The tariff rate has been lowered from 25 per cent to 19 per cent.
The new rate will apply to Malaysian goods entering the US unless exempted under specific conditions.
The order, signed by President Donald Trump, reflects ongoing efforts by the US administration to pressure trade partners to align more closely with its economic and security policies.
https://www.nst.com.my/business/corporate/2025/08/1253707/us-reduces-tar...
Chow said the latest development offered some relief to Malaysian exporters, particularly in Penang's key sectors such as electrical and electronic (E&E), manufacturing and medical devices.
Penang — often referred to as the "Silicon Valley of the East" — is home to more than 350 multinational technology companies and plays a pivotal role in the global semiconductor supply chain.
Chow, however, said the reduction was only partial.
He said Malaysia continued to face strong competition from regional economies that enjoyed even lower or zero tariffs under other trade agreements.
"We are currently awaiting an official response or clarification from the Federal Government regarding the implications of this reduction and the way forward.
"At the same time, we strongly urge the Federal Government to continue negotiations for further tariff concessions, especially in sectors where Penang has strategic economic strengths.
"This will be crucial for us to remain competitive in the global supply chain and to attract future high-value investments to Penang and Malaysia as a whole," he said today.
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