Kuala lumpur: The United States' recent decision to impose a 19% reciprocal tariff rate on Malaysian goods is not expected to affect the competitiveness of Malaysia's commodities in the global market, according to Plantation and Commodities Minister Johari Abdul Ghani.
According to Emirates News Agency, Johari Abdul Ghani emphasized that the tariff rate remains competitive when compared to other ASEAN countries, including Indonesia, which is also facing the same tariff rate. He noted that Malaysia's position in the market is comparable to the lowest rates in ASEAN. He highlighted that Indonesia, the world's top producer of oil palm, is subjected to the same 19% rate, making it a fair situation for Malaysia, which ranks as the second-largest producer.
The US government recently announced the imposition of a 19% reciprocal tariff on imports from Malaysia, effective August 1, 2025. This rate marks a reduction from the previously proposed 25% tariff.