KUALA LUMPUR, Aug 7 — Malaysia has sought clarification from the United States on a proposed 100% tariff on semiconductor chips manufactured in countries without US-based production facilities.
Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz told Parliament today that the ministry had reached out to the US Trade Representative and Department of Commerce to understand the policy’s implementation, The Edge reported.
Tengku Zafrul expressed hope that any changes in US trade policy, including exclusion criteria, would be communicated and negotiated early to preserve Malaysia’s position as a strategic trading partner.
The move follows remarks yesterday by US President Donald Trump, who reportedly said that a 100 per cent tariff would be imposed on all imported semiconductor chips entering the US.
However, Trump clarified that the tariff would not apply to companies that had already committed to or were in the process of setting up manufacturing operations in the US.
Tengku Zafrul noted that there had been no formal announcement yet and said semiconductor products from Malaysia remain exempt from the 19 per cent “reciprocal” tariff set to take effect on August 8.
He warned that the exemption remains under review as part of a Section 232 investigation by the US Department of Commerce, which could still result in new tariffs being imposed.
In 2024, Malaysia exported nearly RM120 billion worth of electrical and electronic (E&E) goods to the US, accounting for about 20 per cent of the nation’s total E&E exports.
Of this, semiconductor products alone contributed RM60.6 billion, underscoring the sector’s importance to Malaysia’s trade with the US.
Tengku Zafrul warned that if US tariffs are applied, the impact on Malaysia could be severe, and said his ministry would hold outreach sessions with industry players and push for greater export market diversification.
