Penang: The United States’ decision to lower its tariff rate from 25 percent to 19 percent marks a promising development for Malaysia’s export sector, particularly in Penang, according to Chief Minister Chow Kon Yeow. This change is expected to benefit industries such as electrical and electronics, manufacturing, and medical devices.

According to BERNAMA News Agency, Chief Minister Chow highlighted that the tariff reduction places Malaysia on equal footing with other ASEAN countries, facilitating a more balanced regional trade environment. He expressed that this move provides much-needed relief to Malaysia’s export sector, especially in Penang.

Chow made these remarks at the National Month and Penang-level Raising of the Jalur Gemilang ceremony, which was attended by key state officials, including Penang State Legislative Assembly Speaker Datuk Seri Law Choo Kiang. He addressed media reports indicating that the US would implement the new 19 percent tariff on Malaysian imports starting August 1, 2025.

Previously, on July 7, the US had announced a 25 percent tariff on all Malaysian products entering the country, an increase from the rate announced in April. Chow noted that while the revised tariff is a positive step, Malaysia still faces intense competition from regional countries with lower or zero tariffs under various trade agreements.

Chow emphasized the need for continued negotiations by the Federal Government with the United States Trade Representative (USTR) to secure additional tariff concessions for strategic sectors. This is crucial for maintaining Malaysia’s competitiveness in the global supply chain and attracting high-value investments.

The Chief Minister reiterated the state government’s commitment to supporting local industries and exporters in adapting to the dynamic global trade landscape. He also commented on US President Donald Trump’s reported intention to attend the upcoming ASEAN Summit, viewing it as an encouraging sign for resolving trade challenges through negotiation and mutual understanding.

Chow concluded by stating that the tariff reduction exceeds expectations and offers renewed optimism for the future of Malaysia’s international trade.