US President Donald Trump is reimposing a 25% tariff on products made in Malaysia starting from August 1, to address a trade deficit arising from Malaysia's policies and trade barriers.
The tariff, labeled as a 'reciprocal tariff,' will be exempt for goods transhipped and does not apply to semiconductors, a significant export for Malaysia.
The tariff escalation threatens Malaysia's economy, particularly the automotive component sector; negotiations to lower the tariff rate are urged to avoid economic risks.
The tariff increase could lead to inflation in Malaysia, impacting prices of goods, while Penang, a major export hub, is closely collaborating with the government and industry stakeholders to protect the nation's economic interests.