Kuala lumpur: Up to 1,711 Malaysian export products to the United States will enjoy tariffs lower than 19 percent under the Agreement on Reciprocal Trade signed between Malaysia and the US today, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He noted that the list includes palm oil, rubber, cocoa, as well as some pharmaceutical components and aerospace equipment.
According to BERNAMA News Agency, these exports collectively represent approximately US$5.2 billion of Malaysia’s exports to the US, constituting about 12 percent of the country’s total exports. Minister Tengku Zafrul stated that the lower tariff will take effect within 60 days after both countries exchange the necessary documents as part of the legal process.
In a joint statement, Kuala Lumpur and Washington disclosed that the US has identified products listed under Annex III to Executive Order 14346, dated September 5, 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a zero percent reciprocal tariff rate. The statement also mentioned that the US has committed to maintaining the reciprocal tariffs at 19 percent, as first outlined in Executive Order 14257, dated April 2, 2025, and amended, on originating goods of Malaysia.
When questioned about Malaysia’s potential disappointment, Tengku Zafrul responded that they were satisfied with the agreement, as what was previously offered remains intact. He expressed contentment that Malaysia did not have to backtrack on any prior agreements and managed to secure more favorable terms on some tariff lines than previously discussed.
According to Tengku Zafrul, the agreement inked today contains the same points shared earlier by the Investment, Trade and Industry Ministry in Parliament. The signing marks the conclusion of prior negotiations, rendering the deal official. He emphasized that the US has provided better access compared to previous agreements, along with some commitments to market access, exceeding verbal agreements or prior announcements.
When asked about the permanence of the deal, Tengku Zafrul remarked, “For us, an agreement is an agreement, and we hope that this holds. And, of course, if it changes, we hope that it is for the better.”