Malaysia's semiconductor exports exempt from US tariffs for now
The exemption remains in place but could change depending on ongoing US policy reviews.
MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said the US is investigating semiconductor imports under Section 232 of its Trade Expansion Act of 1962.
The probe aims to assess whether these imports threaten US national security.
Originally set to conclude by December, the investigation has been expedited, with results guiding potential actions like higher tariffs.
Tengku Zafrul addressed concerns during the Dewan Rakyat's Minister's Question Time session.
He responded to queries from Lim Guan Eng (Bagan-PH) about reports of a possible 100 per cent tariff on semiconductors from non-US producers.
Malaysia is engaging directly with US trade officials to seek clarity and protect exporter interests.
If tariffs are imposed, Malaysian products could lose competitiveness in the US market.
The US has yet to finalise the tariff implementation mechanism.
Current exemptions apply to companies investing in the US, not specific countries.
This means the impact hinges on the operations of foreign firms in Malaysia.
Tengku Zafrul noted that 65 per cent of Malaysia's semiconductor exports to the US come from American companies based locally. - Bernama
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