KUALA LUMPUR, April 3 — United States President Donald Trump this morning announced reciprocal tariffs on more than 180 countries, reportedly the most aggressive trade levies ever imposed by Washington.
Malaysia was one of the countries to make that list, with a 24 per cent import levy imposed on all goods.
The South-east Asian nation runs a trade surplus against the US, and Trump had said he would use tariffs to reduce the imbalance as part of his election pledge to boost US goods.
A trade surplus means a country exports more than it imports. By slapping tariffs on imports, the US makes foreign goods more expensive.
Tariffs are usually deployed as a protectionist measure to support local producers and strengthen domestic supply chains.
As the US is a major trading partner for Malaysia, the reciprocal tariffs are expected to hit some of Malaysia’s biggest industries. In 2024, exports to the US reached an all-time high, valued at nearly RM200 billion, according to data from the Malaysia External Trade Development Corporation (Matrade).
Here are the top five export sectors likely to feel the onslaught of Trump’s latest tariffs, based on their current export value to the US:
1. Electronics and Electricals: This includes integrated circuits, semiconductors and components for electrical and electronic goods. The value of E&E exports alone was estimated at over RM50 billion in 2024.
2. Machinery, equipment and parts: Malaysia exports machinery like automatic data processing machines, printing machines and components, air conditioning machines and components and parts of typewriters and calculating machines, among others, according to the United Nations Comtrade database. Export value was estimated at US$6 billion (about RM27 billion) in 2024.
3. Medical machines, optical parts: They include instruments and appliances used for medical, dental, surgical and veterinary purposes. Estimated export value in 2024 was US$3.89 billion (around RM17.5 billion).
4. Rubbers: Malaysian companies export rubber used for apparels and clothing, surgical gloves, tubes and pipes made of vulcanised rubber among others. Estimated export value in 2024 was US$1.6 billion (around RM7.6 billion).
5. Furniture, lighting signs and prefabricated building materials: These included lamps and lighting fitting, illuminated signs and sign plates. Export value in 2024 was estimated at US$1.55 billion (about RM7 billion).
How exactly Trump’s reciprocal tariffs, announced on “Liberation Day”, will affect these industries remains unclear, given the complexity of trade levies and their varied impact across sectors.
Analysts have been reported as saying there are both potential upsides and downsides, depending on how Putrajaya negotiates new terms.
Shortly after the Liberation Day tariffs were announced, the Ministry of International Trade and Industry (Miti) said it is already “engaging” with the US to find “solutions”.
There are expectations that the Anwar administration would stay neutral even if major economies respond aggressively to Trump’s tariffs, with little likelihood of retaliatory levies.
Still, analysts reportedly believe the levies will likely slow Malaysian exports, with businesses potentially facing secondary impacts such as supply dumping by countries like China, which may seek new markets to bypass Trump’s tariffs — some set as high as 54 per cent.
