4 days ago
US tariff hike on Malaysian goods to impact American palm oil importers
PETALING JAYA: The United States' decision to impose a 25 per cent tariff on Malaysian goods will primarily affect American importers of palm oil products, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He explained that Malaysia exports key commodities such as oleochemicals, rubber gloves, timber, furniture, and cocoa products to the US.
Johari noted that Malaysia's commodity exports to the US total RM20 billion annually, a fraction of the country's overall RM186 billion commodity export value. He highlighted that palm oil-based oleochemicals have no direct substitute in the US market, as soybean oil cannot replicate their properties.
'If the US charges us a 25 per cent tariff, ultimately it is the American people who will have to pay,' Johari said after attending the Malaysian Palm Oil Council (MPOC) Trade Networking Visit dialogue. He added that the Cabinet will review the tariff implications in an upcoming meeting.
Malaysia is not the only country facing such tariffs, and Johari emphasised the need for adaptability in response to trade policy changes. The minister's remarks underscore the broader economic impact of protectionist measures on global supply chains. - Bernama
