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Jo Ghani: US' 19 per cent tariff on Malaysian palm oil competitive

Jo Ghani: US' 19 per cent tariff on Malaysian palm oil competitive

PASIR GUDANG: The 19 per cent export tariff imposed by the United States (US) on Malaysian commodities, including palm oil, is considered competitive and not burdensome compared to other Asean countries, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Johari said Malaysia remained in a good competitive position as the tariff rate was among the lowest in the region.
"The 19 per cent tariff imposed by the US on Malaysia is among the lowest in Asean countries. Even Indonesia, the world's largest palm oil producer, is subject to the same tariff rate. If we look at the context of palm oil commodities, Indonesia is the largest producer, number one in the world, and we are number two. But Indonesia is also subject to 19 per cent like Malaysia, so there is no problem, meaning we have a 'fair fight'," he said.
He was speaking at a press conference after officiating the Pasir Gudang Umno Division Delegates Conference today. Also present was Defence Minister Datuk Seri Mohamed Khaled Nordin, who is also an Umno vice-president and Pasir Gudang Umno division chief.
Malaysia was subjected to the 19 per cent tariff based on an executive order signed by US President Donald Trump. The document for the reciprocal tariff rate adjustment, signed by Trump on July 31, 2025, has been uploaded to the White House website.
Previously, Trump set a 25 per cent tariff for Malaysia, but it is understood that a phone conversation between him and Prime Minister Datuk Seri Anwar Ibrahim yesterday may have been a factor in the tariff reduction.
Johari, who is also performing the duties of the Natural Resources and Environmental Sustainability Minister, added that there had been no significant issues with the country's commodity exports due to the tariff rate.
"Malaysia's commodity exports are still able to compete fairly in the international market. I don't see any problems so far with the 19 per cent tariff imposed by the US on our country's commodity exports," he said.
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