COMMENT | The Federation of Malaysian Manufacturers (FMM) expresses deep concern over the United States’ (US) decision to impose a 24 percent reciprocal tariff on Malaysian exports under its “Liberation Day” initiative.

This higher tariff will take effect on April 9, 2025, following an initial 10 percent tariff that applies to all countries starting April 5, 2025, under the International Emergency Economic Powers Act.

Malaysia is among the countries that have been identified as having a large trade deficit with the US and has therefore been moved from the general 10 percent tariff group to a higher 24 percent tariff category.

This decision is especially troubling given Malaysia’s strong trade relationship with the US and our long-standing commitment to open and fair trade.

While some categories of goods are exempt from the reciprocal tariff including semiconductors, pharmaceuticals, copper, lumber, bullion and certain critical minerals not available in the US, as well as steel, aluminium, and automotive products already covered under existing Section 232 tariffs, most other Malaysian exports to the US will be affected.