Which key Malaysian export sectors face the biggest hit from US tariffs?

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Key Malaysian Export Sectors Facing Significant Impact from US Tariffs

Non-exempt exports, particularly in the photovoltaic cells and printer parts categories, are anticipated to experience a substantial impact due to new US tariffs. This situation is projected to lead to an overall contraction of over five per cent in total exports to the United States. The strategic semiconductor sector, a cornerstone of Malaysia's export economy, is a primary area of focus for protective measures.
Impact on Non-Exempt Exports

Exports of items such as photovoltaic cells and printer parts, which do not benefit from exemptions, are specifically identified as being vulnerable to the US tariffs. These tariffs are estimated to reduce Malaysia's economic growth by between 0.6 and 1.2 percentage points in the upcoming year. The tariff rate was initially set at 24 per cent in April but was subsequently reduced to 19 per cent in August following negotiations.
Significance of the Electrical and Electronics Sector

The electrical and electronics (E&E) and semiconductor sectors collectively account for more than 40 per cent of Malaysia's total exports. Given this substantial contribution, the government is prioritizing the protection of the strategic semiconductor industry, which represents one of the nation's largest export segments.
Potential Job Losses and Supply Chain Relocation

There is a concern that up to 50,000 jobs could be at risk if supply chains are relocated to countries within the region that offer lower tariff rates. This potential relocation underscores the sensitivity of Malaysia's export-oriented industries to changes in international trade policies and the competitive landscape.

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Which key Malaysian export sectors face the biggest hit from US tariffs?

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