Akmal Azhar
Malaysia’s Push for Tariff Exemptions
Kuala Lumpur, September 26, 2025 — Malaysia is seeking exemptions from U.S. tariffs on key commodities and industrial goods ahead of U.S. President Donald Trump’s visit. Chief negotiator Mastura Ahmad Mustafa, who also serves as Deputy Secretary-General at the Ministry of Investment, Trade and Industry (MITI), confirmed that Washington has agreed to consider zero tariff rates on goods not produced domestically in the United States, such as palm oil and cocoa.
Sectors Under Review
The U.S. will also evaluate exemptions for furniture, automotive parts, and aerospace components. These discussions are being held under a reciprocal trade negotiation process, with several virtual sessions already completed. Mastura said the U.S. has shown willingness to grant unilateral tariff exemptions for products it cannot produce itself.
Exclusions from the Deal
Despite this progress, some sectors remain excluded. Semiconductors and pharmaceuticals are governed by Section 232 of the U.S. Trade Expansion Act of 1962, which allows extra tariffs on national security grounds. Recently, President Trump announced that all branded or patented pharmaceuticals will face a 100 percent tariff unless manufacturers establish operations in the U.S.
Tariff Rates on Other Goods
Other products have also been targeted: a 50 percent tariff on kitchen cabinets and bathroom vanities, a 30 percent tariff on upholstered furniture, and a 25 percent tariff on heavy or large trucks manufactured outside the United States.
Negotiations Ahead of Trump’s Visit
Malaysia is in talks to determine whether it can qualify for exemptions under Section 232. MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz has stated that the government hopes to finalize the reciprocal trade agreement before President Trump’s arrival in October for the 47th ASEAN Summit and related meetings.
