Malaysia remains in lower US tariff tier, at 10 per cent

Malaysia remains among the 17 economies subject to the US’ lower 10 per cent Section 301 tariff following Washington’s investigations into forced labour-related import enforcement across 60 economies.

The tariff, which took effect on July 24, follows the expiry of the temporary tariff imposed under Section 122 of the US Trade Act of 1974.

The Investment, Trade and Industry Ministry today said Malaysia’s placement in the lower tariff tier reflects the United States Trade Representative’s (USTR) recognition of the country’s commitments to implement and enforce laws prohibiting the importation of goods produced using forced labour.

The remaining economies covered by the investigation are subject to a higher 12.5 per cent tariff rate, the ministry said in a statement.

The ministry also said the USTR’s Section 301 investigation into excess capacity, involving 16 economies including Malaysia, remains ongoing.

The ministry said it would update stakeholders once the USTR determines any tariff measures arising from the excess capacity investigation, adding that it will continue engaging with the US on the matter.