M'sia's timber products still desirable in US despite tariffs, says Johari
KUALA LUMPUR : Malaysia's timber exports remain desirable in the US market despite the newly imposed tariffs, says plantation and commodities minister Johari Ghani.
He attributed the continued demand to Malaysia's reputation for high-quality timber products and competitive prices.
'Despite the tariff, which is currently at 10%, exports are still strong due to the good quality and design of our products. People are willing to pay the price,' he told reporters after attending the Malaysian Timber Industry Board appreciation ceremony here today.
In 2022, Malaysia exported timber and timber products worth RM7.73 billion to the US. This was a steady increase from RM3.76 billion in 2018.
On April 2, US president Donald Trump imposed a blanket tariff of 10% on imports and added 'reciprocal tariffs' on countries with large trade surpluses with the US.
Malaysia was hit with a 24% tariff – lower than Vietnam (46%), Cambodia (49%) and Indonesia (32%).
Trump subsequently paused the implementation of these tariffs for 90 days, except for China which faces a steep levy of 145%.
Johari also addressed concerns over companies attempting to manipulate trade routes by changing the certificate of origin of timber products for export.
He said his ministry was actively monitoring the issue, and warned that timber exports must contain at least 60% local added value, even if some materials are sourced from abroad.
He said only raw timber materials could be imported for processing, with certificates of origin granted only if substantial local value is added.
Johari also cautioned that failure to curb such practices could jeopardise the credibility of legitimate Malaysian exporters amid escalating global trade tensions.
In February, it was reported that the export value of timber products increased 4.9% to RM22.9 billion last year, compared to 2023.
The timber industry was the third-largest export contributor for agricommodity products after palm oil (RM114.4 billion) and rubber (RM33.7 billion).
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