What specific US trade regulation underpins the latest tariffs on Malaysia?

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US Section 301 of the Trade Act of 1974 Underpins Latest Tariffs on Malaysia

The most recent tariffs imposed on Malaysian goods entering the United States are being applied under Section 301 of the Trade Act of 1974. This specific trade regulation is being utilised due to allegations that Malaysia has not eliminated forced labour within its supply chains.
Basis of the Latest Tariffs

The current tariffs are rooted in concerns over forced labour practices in Malaysia's supply chain. This action follows previous tariff measures, but under a distinct legal framework. The Malaysian government has contested these claims and indicated that negotiations with the US will persist to reach a mutually agreeable resolution.
Previous Tariff Regulations and Agreements

Prior to the Section 301 tariffs, Malaysia was subject to different levies. An earlier 25 per cent tariff, imposed after the current US administration took office, was later reduced to 19 per cent under the Malaysia-US Agreement on Reciprocal Trade (ART). This ART, signed in October of the previous year, provided exemptions for key Malaysian exports like semiconductors and palm oil, in return for Malaysia agreeing to significant purchases from the US. When the US Supreme Court invalidated broader tariffs in February 2026, a temporary 10 per cent levy was implemented for 150 days under Section 122 of the Trade Act of 1974, which has now been succeeded by the Section 301 action.
Potential for Additional Tariffs

Beyond the forced labour concerns, Malaysia is also reportedly under investigation by the US regarding issues of excess industrial capacity. This separate probe, according to the Investment, Trade and Industry Minister, could potentially lead to further tariffs being imposed on Malaysian exports.
Exemptions from the 10 Per Cent Tariff

Certain categories of Malaysian goods are currently exempted from the 10 per cent tariff. These include products such as oil and gas, fertilisers, aircraft and their parts, critical minerals, and specific food items. Additionally, goods already subject to national security tariffs under Section 232, like automobiles, steel, aluminium, and copper, will not incur an extra levy under this new regulation. However, there is a possibility that Malaysian palm oil exports, valued at approximately RM2 billion annually, may also face the 10 per cent tariff, though the government has stated its capacity to manage such an impact.

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What specific US trade regulation underpins the latest tariffs on Malaysia?

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