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Penang CM hails US tariff cut as relief for Malaysia and Penang's export sector, urges deeper trade concessions
Penang CM hails US tariff cut as relief for Malaysia and Penang's export sector, urges deeper trade concessions

Malay Mail

time8 minutes ago

  • Business
  • Malay Mail

Penang CM hails US tariff cut as relief for Malaysia and Penang's export sector, urges deeper trade concessions

GEORGE TOWN, Aug 1 — The United States' (US) decision to reduce the tariff rate from 25 per cent to 19 per cent is a positive development for Malaysia's export sector, particularly in Penang, which is active in industries such as electrical and electronics (E&E), manufacturing, and medical devices. Chief Minister Chow Kon Yeow said the move places Malaysia on par with other Asean countries, helping to create a level playing field in regional trade. 'This is a welcome development that provides relief to the country's export sector, particularly in Penang, and it is a blessing. The tariff rate has been reduced and is now comparable to those of other Asean countries. 'This development has therefore placed most Asean countries on an equal footing in terms of Asean regional trade relations, and it marks a step towards enhancing Malaysia's trade competitiveness,' he told reporters here today. He said this after launching the National Month and the Penang-level Raising of the Jalur Gemilang ceremony, which was also attended by the Penang State Legislative Assembly Speaker, Datuk Seri Law Choo Kiang, who is also chairman of the Penang State Government Official Councils. Chow was responding to media reports that the US will impose a reduced 19 per cent tariff on Malaysian imports, effective Aug 1, 2025. On July 7, Washington had announced a 25 per cent tariff on all Malaysian products entering the US, in addition to existing sectoral tariffs, effective Aug 1 this year. This figure was one percentage point higher than the tariff rate announced in April. Commenting further, Chow said that the revised tariff is just the beginning, as Malaysia still faces stiff competition from other regional countries that enjoy lower or zero tariff rates under various trade agreements. 'We are awaiting further details from the United States Trade Representative (USTR) and the Federal Government regarding which sectors may be affected or benefit,' he said. He noted that the state government has urged the Federal Government to continue negotiations to secure greater tariff concessions for strategic sectors, in order to maintain Malaysia's competitiveness in the global supply chain and its ability to attract high-value investments. 'The state government remains committed to supporting local industries and exporters as they adapt to the ever-evolving global trade landscape,' Chow said. On a related note, he described US President Donald Trump's reported intention to attend the upcoming Asean Summit as a positive sign that trade challenges between both sides can still be addressed through negotiation and mutual understanding. 'This tariff reduction has exceeded expectations and gives renewed hope for the future of Malaysia's international trade,' he added. — Bernama

Trade deal with U.S. will boost Thailand's competitiveness, confidence, minister says
Trade deal with U.S. will boost Thailand's competitiveness, confidence, minister says

Reuters

time43 minutes ago

  • Business
  • Reuters

Trade deal with U.S. will boost Thailand's competitiveness, confidence, minister says

BANGKOK, Aug 1 (Reuters) - Thailand's finance minister said on Friday that the 19% tariff rate agreed with the United States will help bolster its competitiveness globally, boost investor confidence and create opportunities for economic growth. The new rate is significantly lower than the 36% level announced in April and better aligned with other countries in the region. The United States was Thailand's largest export market last year, accounting for 18.3% of total shipments, or $54.96 billion. "The announcement of the 19% tariff rate reflects the strong friendship and close partnership between Thailand and the United States," minister Pichai Chunhavajira said on X. "It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence, and opens the door to economic growth, increased income, and new opportunities for the country," he added. The government is fully aware of the impact on businesses and farmers and has prepared various support measures including budget allocations, soft loans, subsidies, tax incentives, and regulatory reforms, Pichai said. The support measures will "help Thailand adapt and confidently step into the future global economy," he added. Thailand must accelerate its adaptation and move forward in building a stable and resilient economy, ready to face the global challenges ahead, Pichai said. Thailand's top exports to the United States last year were computers, teleprinters and telephone sets, and rubber products. Its top imports from the United States were crude oil, machinery and parts, and chemicals. On Wednesday, the finance ministry raised its 2025 economic growth forecast slightly to 2.2% from 2.1%, based on a tariff rate of 15% to 36%. Thailand's economy expanded 2.5% last year. Vietnam and Indonesia negotiated U.S. tariffs of 20% and 19%, respectively.

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