US tariff cut boosts Malaysia's trade competitiveness with improved relations
The tariff reduction from 25% to 19% is expected to benefit key export sectors, including electrical and electronics, machinery, and rubber-based products.
FMM president Tan Sri Soh Thian Lai described the move as timely, noting that even a modest six-percentage-point cut could significantly impact industries operating on tight margins.
'While US importers technically bear the tariff cost, the burden often trickles down the supply chain. This reduction improves our pricing edge in price-sensitive markets,' he said.
The adjustment follows US President Donald Trump's executive order ahead of his August 1 trade deadline.
Soh emphasized that the revision signals progress toward balanced Malaysia-US trade relations, potentially stimulating demand for Malaysian exports. 'This supports long-term export growth and strengthens economic ties,' he added.
Sectors like processed industrial goods may see gradual order increases as exporters gain confidence.
However, manufacturers remain cautious amid global supply chain disruptions, factoring volatility into future planning. - Bernama
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