The new 10% tariff imposed by the US on Malaysian exports will not affect the nation’s competitiveness given that other exporting nations face higher rates, says investment, trade and industry minister Johari Ghani.
Johari said the 10% tariff was among the lowest imposed by Washington over forced labour issues, keeping Malaysia in a competitive position in the US market.
He noted that a 10% tariff was also imposed on 16 other nations, while most economies face a 12.5% tariff.
“From an export perspective, every nation that exports to the US is being hit by tariffs, and Malaysia is only being imposed with a 10% tariff. So our position (in the US market) is more or less the same,” he said.
He was speaking to reporters after officiating the National Chamber of Commerce and Industry of Malaysia’s 50th annual general meeting here today.
Johari said Putrajaya feared being slapped with a far higher tariff rate than other competing nations.
Washington has imposed a 10% tariff on nearly all Malaysian exports over the country’s alleged failure to impose and effectively enforce a ban on imports linked to forced labour.
This followed an investigation launched by the US Trade Representative in March into 60 economies over their forced labour import restrictions.
Malaysia received a lower rate due to its commitments related to forced labour import prohibitions under its reciprocal trade agreement with the US, which has yet to be ratified.
Johari said the government was committed to enacting the relevant laws against forced labour within two years of the reciprocal trade agreement’s ratification.
“Once the agreement is ratified, Malaysia has two years to amend existing laws or introduce new laws,” he said.
