Which Malaysian sectors will enjoy zero tariffs under the new US trade agreement?

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Malaysian Sectors Benefiting from Zero Tariffs Under New US Trade Agreement

Under the recently concluded trade negotiations with the United States, Malaysia will see a significant expansion of tariff-free trade across various sectors. Specifically, the semiconductor and pharmaceutical industries will continue to benefit from zero tariffs on their exports to the US. This development is part of a broader agreement that will ultimately eliminate tariffs on 6,911 tariff lines, representing 61 per cent of the total 11,260 lines requested by the United States, a substantial portion of the overall trade exchange.
Semiconductor and Pharmaceutical Exports Remain Duty-Free

The Minister of Investment, Trade, and Industry, Datuk Seri Tengku Zafrul Abdul Aziz, clarified that the existing zero-tariff status for exports in the semiconductor and pharmaceutical sectors remains unaffected by the recent negotiations. This ensures continued preferential market access for these key Malaysian industries in the United States, a crucial aspect of their export strategies.
Expanded Zero-Tariff Lines

Following extensive negotiations, Malaysia has secured zero-tariff treatment for 6,911 tariff lines when exporting to the United States. This figure represents 61 per cent of the 11,260 tariff lines that the United States had proposed for negotiation. While a comprehensive offer was made covering 98 per cent of all tariff lines, only 61 per cent have been agreed upon for liberalisation.
Strategic Sectors Retain Protection

Despite the concessions made in expanding zero-tariff provisions, Malaysia has maintained its stance on protecting certain strategic sectors. The government declined requests to abolish excise duties on vehicles, tobacco, and alcohol, and did not eliminate import permit requirements or relax foreign equity caps in critical industries. These decisions underscore Malaysia's commitment to safeguarding its economic sovereignty and national security.

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Which Malaysian sectors will enjoy zero tariffs under the new US trade agreement?

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