Malaysian pharmaceuticals, semiconductors exempt from US tariffs, minister says
The rate, significantly lower than a 25% levy threatened last month, came as U.S. President Donald Trump hit dozens of trading partners with steep tariffs, pressing ahead with plans to reorder the global economy.
Malaysia's Trade Minister, Tengku Zafrul Aziz, told reporters both sides were still negotiating over the details of the deal, and would release a joint statement in the coming days.
"At this time, exports of semiconductor and pharmaceutical (products) remain at 0% (tariff rate)," he said at a press briefing.
The U.S. was also open to exempting Malaysian cocoa, rubber and palm oil, but an agreement was still being finalised, Tengku Zafrul said.
His ministry said in a statement earlier on Friday that the tariff figure had been reached after sustained engagement by both countries and that the agreement did not cross any of Malaysia's "red lines" or compromise its sovereign rights.
Tengku Zafrul said there had been no agreement with the United States or other countries on the exclusive supply of rare earths.
"In fact, no such request has been made by the U.S.," he said.
Gaining access to rare earth metals has been a crucial part of U.S. trade negotiations, with rival China currently in control of 90% of global processing capacity. Critical minerals were also under discussion during U.S. negotiations with Indonesia.
The minister said Malaysia had not accepted Washington's requests to relax Malaysian halal product certification, remove excise duties for alcohol, tobacco and automotives, and loosen foreign shareholder limits for certain sectors.
"We did not compromise on export duties, blanket exemption from import licensing requirements for U.S. products, and total liberation of equity requirements for strategic sectors," the minister said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
23 minutes ago
- Reuters
Gold rises for fourth session as US jobs data lifts Fed rate cut bets
Aug 5 (Reuters) - Gold nudged higher for a fourth session on Tuesday, supported by a softer dollar and lower Treasury yields as weaker-than-expected U.S. jobs data strengthened expectations of a rate cut in September. Spot gold was up 0.1% at $3,375.89 per ounce as of 0239 GMT. U.S. gold futures also gained 0.1% to $3,430.40. The dollar index (.DXY), opens new tab hovered near a one-week low, making gold more affordable to holders of other currencies. The yield on the benchmark 10-year Treasury note dropped to a one-month low. "Short-term momentum has improved for the bullish side of the narrative supporting gold prices is that the Fed is still in the mode to actually cut rates in September," OANDA senior market analyst Kelvin Wong said. U.S. employment growth was softer than expected in July, while non-farm payroll figures for May and June were revised down by a massive 258,000 jobs, suggesting a deterioration in labor market conditions. Traders now see a 92% chance of a September rate cut, per the CME FedWatch tool. San Francisco Fed Bank President Mary Daly said on Monday that given mounting evidence that the U.S. job market is softening and that there is no sign of persistent tariff-driven inflation, the time is nearing for rate cuts. Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment. On the trade front, President Donald Trump once again threatened on Monday to raise tariffs on Indian goods over its Russian oil purchases. New Delhi called his remarks "unjustified" and vowed to protect its economic interests, deepening the trade rift between the two countries. Still, gold faces some technical resistance. "I still do not see traders pushing up aggressively above the $3,450 level. Unless we have a very clear catalyst for gold price to actually pick up this level" OANDA's Wong said. Elsewhere, spot silver rose 0.1% to $37.44 per ounce, platinum gained 0.1% to $1,330.31 and palladium was up 0.2% to $1,204.25.
The Independent
an hour ago
- The Independent
Trump's NASA chief Sean Duffy expedites timeline for nuclear reactor on the moon
President Donald Trump's NASA chief Sean Duffy has expedited the timeline to build a nuclear reactor on the moon, according to a directive obtained by The Independent . The space agency has already mentioned the benefits of developing fission surface power (FSP) on the moon and Mars. 'Relatively small and lightweight, fission systems are powerful and could enable robust operations on the Moon and Mars,' NASA writes on its website. The agency says it's currently working with the Energy Department and the space industry to design a fission power system that would provide at least 40 kilowatts of power. In a directive sent to the heads of NASA on July 31, Duffy, the acting administrator of the agency and Trump's transportation secretary, ordered that the nuclear reactor provide at least 100 kilowatts of power and be ready to launch by 2030. NASA chief Sean Duffy has expedited the timeline to build a nuclear reactor on the moon, according to a new directive () The directive, first reported on by Politico, mentioned China and Russia's joint effort to place a reactor on the moon by the mid-2030s. The two U.S. adversaries first announced their plans in March 2024. 'The first country to do so could potentially declare a keep-out zone which would significantly inhibit the United States from establishing a planned Artemis presence if not there first,' Duffy warned in the directive. NASA's Artemis campaign aims to establish the first long-term presence on the moon. During Trump's inaugural address, he said the U.S. would launch astronauts 'to plant the stars and stripes on the planet Mars.' 'It is about winning the second space race,' a NASA senior official told Politico. An artist's concept of a fission power system on the moon (NASA) In Duffy's new timeline, a Fission Surface Power Program Executive will be designated within 30 days of the directive. The executive 'is empowered to provide reporting and updates with maximum transparency directly to the Administrator,' Duffy wrote. Within 60 days, NASA will ask for industry proposals for the nuclear reactor, according to the directive. The directive mentioned Trump's budget request for the 2026 fiscal year, which includes $350 million for a new program 'that will accelerate the development of high priority technologies for Mars, (i.e. FSP).' The funding would increase up to $500 million starting in the 2027 fiscal year. Trump's budget request also proposes a huge cut to NASA, with The Planetary Society, a global non-profit space organization, reporting it's the smallest budget proposed for the agency since 1961.
Reuters
an hour ago
- Reuters
Indian equity benchmarks to open flat as investors assess Trump's tariff threat
Aug 5 (Reuters) - India's equity benchmarks are set to open little changed on Tuesday after U.S. President Donald Trump reiterated his threat of harsh tariffs on goods from India over its Russian oil purchases. Gift Nifty futures were trading at 24,766 points as of 7:59 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open around its previous close of 24,722.75. Trump on Monday threatened to raise tariffs on goods from India over its Russian oil purchases, while New Delhi called his attack "unjustified" and vowed to protect its economic interests, deepening the trade rift between the two countries. Analysts said the ongoing trade rift has hit the market sentiment, and expect benchmarks to remain in a range-bound trade until there is clarity over U.S. tariffs. The uncertainty has partly driven sustained foreign outflows from India. Foreign investors have sold Indian shares for 11 straight sessions till Monday, per provisional data. The Reserve Bank of India's policy decision on Wednesday will also be in focus. The central bank is expected to hold interest rates steady, but the odds of another cut have risen as the U.S. tariffs are adding to pressure on growth. ** IndusInd Bank ( opens new tab appoints veteran banker Rajiv Anand as chief executive officer for a three-year term starting August 25 ** China's Ant Group ( opens new tab to sell its entire stake in Indian payments firm Paytm ( opens new tab in block deals that could total 38 billion rupees ($433.72 million), according to a term sheet seen by Reuters on Monday ** Drugmaker Aurobindo Pharma ( opens new tab reports a lower first-quarter profit on Monday, as expenses grew faster than revenue - stung by weak prices in the key U.S. market
