How can the US avoid blanket tariffs hurting compliant Malaysian firms?

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The US can avoid hurting compliant Malaysian firms by applying a targeted, reviewed tariff approach instead of blanket duties.

FMM says the United States should not impose broad Section 301 duties on Malaysian imports linked to forced labour if those goods come from manufacturers already meeting strict labour requirements. It argues that a balanced approach, with exclusions and regular review, would reduce the risk of penalising compliant firms and disrupting long-standing supply chains.
FMM wants existing exclusions kept in place for key products

FMM has called on the USTR to retain the current Annex A exclusions, especially for electrical and electronics products, semiconductors and related product lines. These items were described as important to global supply chains, and FMM said they should not be swept into new duties without distinction.
Malaysian goods already under Section 232 tariffs should not face another layer of duty

FMM also urged the US not to add Section 301 duties to Malaysian products that are already covered by Section 232 tariffs. That would avoid stacking tariffs on the same goods, which FMM says would place an extra burden on trade flows involving Malaysian suppliers.
A yearly review would let the US reassess whether duties are still needed

FMM recommended that the USTR set up a periodic review mechanism, at minimum once a year, to assess whether any duty rate on Malaysian-origin goods remains necessary and appropriate. Lee Chor Kok said this would create a practical and fair process for recognising Malaysia’s domestic reforms over time.
Malaysia says it has already strengthened labour compliance measures

Malaysia has stepped up efforts through reforms to recruitment-fee practices, amendments to labour laws and remediation measures linked to previous US Customs and Border Protection Withhold Release Orders. The Inter-Agency Task Force on Forced Labour, announced in Parliament on June 23 by Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani, was cited as evidence of that effort.

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How can the US avoid blanket tariffs hurting compliant Malaysian firms?

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