The 19% tariff imposed by the US on Malaysian goods will not affect the competitiveness of Malaysia’s commodities in the global market, says plantation and commodities minister Johari Ghani.
He said this was because the tariff remains competitive compared with other Asean nations, including Indonesia, which also faces the same tariff rate, Bernama reported.
“We’re almost on par with the lowest rates in Asean. For example, Indonesia is the world’s top producer of palm oil, and we’re number two.
“It is also subject to the 19% rate. So for us, 19% is fair. It’s not a problem,” he was quoted as saying, after attending the Pasir Gudang Umno delegates’ meeting today.
Yesterday, the US announced the imposition of a 19% reciprocal tariff on imports from Malaysia, effective Aug 1, a reduction from the previously proposed 25%.
In response, investment, trade and industry minister Tengku Zafrul Aziz said Malaysia will advocate for 0% tariffs on commodities such as cocoa, rubber and palm oil, similar to the 0% rate enjoyed by the semiconductor and pharmaceutical sectors.
