KUALA LUMPUR, Sept 26 — The United States (US) has agreed to consider granting tariff exemptions, specifically zero tariff rates, on several commodity products not produced in the US, including palm oil and cocoa, which are expected to be finalised next month.
The Investment, Trade, and Industry Ministry's (Miti) deputy secretary-general Mastura Ahmad Mustafa said that apart from commodities, Malaysia also requested zero tariffs for furniture, as well as automotive and aerospace parts and components.
Speaking as the official tariff negotiations' chief negotiator, she said the US had conveyed the matter in several prior negotiation sessions.
“As mentioned, we are currently in the process of detailing the agreement on reciprocal tariff. Starting yesterday, we have arranged several virtual sessions with the US to finalise the agreement.
“In these negotiations, the US side indicated that they are open to considering several goods which, in their view, cannot be produced domestically. For such products, they will consider granting exemptions in the form of zero tariffs under this unilateral tariff arrangement,” Mastura told Bernama in an exclusive interview today.
However, the agreement, which is expected to be finalised next month, does not include the semiconductor and pharmaceutical sectors, which fall under the US’ Section 232 of the Trade Expansion Act of 1962. Under the Act, it is allowed to impose additional tariffs on the grounds of national security.
On Thursday, US President Donald Trump announced that the US will impose a 100 per cent tariff on any branded or patented pharmaceutical product, unless the company is building its pharmaceutical manufacturing plant in the country.
Apart from that, Washington would impose a 50 per cent tariff on all kitchen cabinets, bathroom vanities and associated products, as well as a 30 per cent tariff on upholstered furniture.
Similarly, a 25 per cent tariff will also be imposed on all "heavy or big trucks" made in other parts of the world. Those tariffs come into effect on October 1.
“If we look at the conditions imposed by President Trump, companies that invest in the US would have their companies exempted from duties under Section 232.
"However, at the same time, we are also trying to negotiate whether Malaysia can be considered for any exemptions from those tariffs,” she said.
Yesterday, Miti minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that Malaysia aims to conclude the reciprocal trade agreement between Malaysia and the US before Trump’s visit next month for the 47th Asean Summit and Related Summits.
