Kuala lumpur: The United States’ decision to impose a 25 percent tariff on Malaysian goods is expected to significantly impact American importers of Malaysian palm oil products. This development was highlighted by Malaysia’s Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, during a recent dialogue.

According to BERNAMA News Agency, Johari emphasized that Malaysia exports a range of palm oil-based products to the US, including oleochemicals. In addition to palm oil, Malaysia also exports other key commodities to the US such as rubber gloves, timber, furniture, and cocoa products. Despite the tariff, Johari pointed out that Malaysia’s commodity exports to the US account for only RM20 billion of the total annual commodity exports, which are valued at RM186 billion.

Johari remarked on the lack of alternatives to Malaysian palm oil products in the US, particularly oleochemicals, as soybean cannot be converted into these products. He suggested that, ultimately, the cost of the tariff would fall on American consumers, as they lack alternative sources for some of these commodities. He conveyed this perspective to the media following the inaugural Malaysian Palm Oil Council (MPOC) Trade Networking Visit dialogue.

The minister also mentioned that the Malaysian Cabinet is scheduled to discuss the implications of the US tariff in an upcoming meeting on Wednesday. He acknowledged that Malaysia is not the only country facing such tariffs, and stressed the importance of adaptability in responding to these international trade challenges.