No plans to review trade targets over tariffs for now, says ministry
PETALING JAYA : The investment, trade and industry ministry (Miti) does not plan to review its trade growth targets for 2025 despite the 19% US tariff which come into effect tomorrow.
Its minister, Tengku Zafrul Aziz, said the ministry had set a trade growth projection of 5% from RM2.87 trillion last year to RM3.01 trillion for 2025.
He said Malaysia already recorded a 4.8% trade growth in the first half of the year, with exports rising 3.8% to RM760.2 billion and imports going up by 5.9% to RM704.6 billion.
This was likely linked to frontloading activities by exporters ahead of the US tariffs, to avoid paying higher costs.
'Trade performance is expected to decline slightly in the second half of 2025 due to reduced demand from the US market after the enforcement of the tariffs.
'A more obvious impact is expected in the first quarter of 2026 when trade activities resume after the implementation of the tariffs.
'Nonetheless, Miti has no plans at the moment to revise our trade growth target for 2025. The ministry will continue to monitor developments, particularly exports to the US, and formulate suitable mitigation strategies,' he said in a written parliamentary reply.
On Aug 1, the US announced a 19% tariff on Malaysian exports effective Aug 7, a reduction from the 25% tariff previously imposed.
Semiconductor products are currently exempted from the 19% tariff. However, Tengku Zafrul had said Malaysia should remain prepared for the possibility of the US imposing tariffs on the industry amid a review by Washington.
He said Malaysia and the US were still in the process of reaching an agreement on a joint statement that would include mutually agreed upon commitments.
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