What US Section 301 tariff rate will Malaysia face today?

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Malaysia to Face 10 Per Cent US Section 301 Tariff

Malaysia will be subject to a 10 per cent tariff imposed by the United States under Section 301 of the Trade Act of 1974, effective from July 24. This rate reflects the US Trade Representative's (USTR) acknowledgment of Malaysia's commitment to enforcing laws against the importation of goods produced with forced labour. Malaysia is among 17 economies that qualified for this lower tariff, distinguishing it from other targeted economies facing a higher 12.5 per cent rate.
Lower Tariff Rate Acknowledges Commitments on Forced Labour

The decision to impose a 10 per cent tariff acknowledges Malaysia's efforts in implementing and enforcing legislation that prohibits the import of goods made with forced labour. This preferential rate is applied to economies that have either already established such prohibitions or have committed to doing so through reciprocal trade agreements. The USTR's framework specifically designates this lower rate for countries demonstrating such commitments.
Malaysia Among Few Asean Nations to Secure Lower Rate

Out of the 17 economies qualifying for the 10 per cent tariff, Cambodia and Indonesia are the only other member nations of the Association of Southeast Asian Nations (Asean) to achieve this status. This positions Malaysia's tariff rate as the lowest among its regional peers, highlighting its successful engagement with the USTR's requirements concerning forced labour practices.
New Duty Effective July 24, Part of Broader Action

The new tariff rate commences at 12:01 am US Eastern time on July 24, immediately following the expiration of a prior temporary tariff. This measure is part of a wider USTR initiative impacting 60 economies globally, stemming from extensive investigations that included public hearings and the review of thousands of public comments. The action aims to address global worker welfare and correct trade practices deemed distortive.
Tariff Rate Quotas Planned for Several Economies

Beyond the imposed tariff, the USTR intends to establish tariff rate quotas for Bangladesh, Cambodia, Indonesia, and Malaysia. These quotas, which will be contingent on the use of US inputs, are designed to incentivise these nations to increase imports of American cotton and textile goods. This initiative seeks to reduce their reliance on sources potentially linked to forced labour.

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What US Section 301 tariff rate will Malaysia face today?

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