• 2025-08-01 06:44 PM

KUALA LUMPUR: Semiconductor and pharmaceutical exports to the United States will remain exempt from the 19 per cent tariff for now, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Describing the decision as a win-win outcome, Tengku Zafrul noted that the US is still reviewing its trade laws to assess the fairness of the zero-tariff policy on these sectors.

“The timeline for the review is December this year, though it could be earlier,“ he said during a press conference.

The US had previously imposed a 19 per cent tariff on Malaysian exports, but the exemption for semiconductors and pharmaceuticals reflects strong bilateral ties. “This is a positive development for both Malaysia and the US,“ Tengku Zafrul added.

In return, Malaysia will apply a zero per cent tariff on 6,911 US imports, covering 191 agricultural and 1,347 industrial products.

This accounts for 61 per cent of the 11,260 tariff lines requested by the US. - Bernama