KUALA LUMPUR, August 7 — The Investment, Trade and Industry Ministry (Miti) reiterated that Malaysia’s semiconductor exports to the United States are still exempt from reciprocal tariffs.
However, the ministry said this is subject to the US’ current policy reviews and changes at any time.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the US is conducting an investigation under Section 232 of its Trade Expansion Act of 1962 to determine whether imports of semiconductors, semiconductor manufacturing equipment and related derivative products pose a threat to its national security.
“The investigation was supposed to be completed by the end of December, but (has been) expedited, and the results from this investigation will be used for further action, including the possible measure of high tariffs as announced by US President Donald Trump this morning,” he said during the Ministers’ Question Time session in the Dewan Rakyat today.
He was replying to a supplementary question from Lim Guan Eng (Harapan-Bagan) about the impact of the latest reports that the US would impose a tariff of around 100 per cent on imported semiconductors from countries that do not produce them in the US or do not plan to do so.
Tengku Zafrul said Malaysia is taking several mitigation moves, including communicating directly with the US Trade Representative and the Commerce Department to obtain official clarification and to advocate for the interests of Malaysian exporters.
He said if tariffs are imposed, Malaysia will risk losing a key market in the US, as locally made products might become less competitive.
However, he said, the US government has not finalised the detailed mechanism for implementing the tariffs.
“Based on current information, the exemption is not country-based but on companies that invest directly in the US, regardless of the company’s location in another country.
“Therefore, the impact is highly dependent on the investments and operations of international companies located in Malaysia,” he added.
Tengku Zafrul also said 65 per cent of Malaysia’s semiconductor exports to the US are from American companies operating in Malaysia.
