1,711 Malaysian export products to US enjoy zero tariff - Tengku Zafrul

KUALA LUMPUR: Up to 1,711 Malaysian export products to the United States (US) will enjoy a zero-per cent tariff under the Agreement on Reciprocal Trade signed between Malaysia and US today, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

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Malaysia and the US agreed to zero tariffs on exports like palm oil, rubber, cocoa, pharma components, and aerospace parts.
The covered exports total US$5.2 billion, making up 12% of Malaysias exports to the US.
The deal is officially signed and will take effect within 60 days, and Malaysia says it gained better terms than previously offered.

He said the list includes palm oil, rubber, cocoa, as well as some pharmaceutical components and aerospace equipment.

"These exports collectively amount to about USD5.2 billion (USD1 = RM4.221) of our export to the US, which is about 12 per cent of our total export," he told a press conference here today.

Tengku Zafrul said the zero-tariff will take effect within 60 days after both countries exchange the documents as part of the legal process.

In a joint statement today, Kuala Lumpur and Washington said the US has identified products listed under Annex III to Executive Order 14346, dated Sept 5, 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a zero per cent reciprocal tariff rate.

It also said the US has committed to maintain at 19 per cent the reciprocal tariffs first outlined in Executive Order 14257, dated April 2, 2025, as amended, on originating goods of Malaysia.

Asked if Malaysia is disappointed about this, Tengku Zafrul replied: "No, we are not disappointed. In fact, we are satisfied because what was offered before stays for Malaysia. But what we are quite glad about is that we didn't have to backtrack on any of what we agreed on before.

"And we are also happy that on some of the tariff lines, we managed to get more than what was discussed before."

According to Tengku Zafrul, the agreement inked today contains the same points previously shared by the Investment, Trade and Industry Ministry in Parliament, and the signing marks the conclusion of the negotiations earlier, making the deal official.

"As I mentioned before, this agreement has already been agreed before, and this is the official agreement that has been done in writing.

"In fact, the US has given better access compared to what was before, and also (along with) some commitments to access to their market. So, what has been given to us was better than what was agreed verbally or announced before," he said.

Asked if he is confident if the deal is"the final deal" without further change, Tengku Zafrul said: "For us, an agreement is an agreement and we hope that this holds. And, of course, if it changes, we hope that it is for the better."

-- BERNAMA