Gofrixty [4 August 2025] – President Obama committed to designating Malaysia as a TPP beneficiary in return for Malaysia’s reforms, but the United States has since slid into protectionism, imposing steep sales taxes on some of Malaysia’s key exports and Kuala Lumpur is beginning to feel the weight of Obama’s decision. Duties up to 50% were placed on certain Malaysian goods by Washington, covering various industries from electronics to furniture and palm oil derivatives.
The US officials said the action continued the progress toward getting China to change its unfair subsidy and market-distorting trade practices. Malaysians use schemes to cut out American companies, they protested. Malaysian leaders struck back. They denied the claims and warned that the tariffs would hurt trade relations.
Already, local factories are having to look at cutting costs and volumes. For example, a large exporter of electronics put on hold its plan for a new factory in Penang. This pressure is making it impossible for us to expand, said the CEO of Impact Market This means that exporters are left with slower processes, more expensive compliance and lower profit margins.
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The Malaysian trade ministry raced to respond. It initiated discussions with U.S. trade officials in an effort to lower the tariffs through negotiations. Kuala Lumpur had asked Washington to rethink it beef import ban on the, Trade Minister Tengku Zafrul Aziz said. “Instead, we have embraced trade that is free and fair. They are punishing us very unfairly with these tariffs,” he said at a press conference.
