Malaysia will hold tariff discussions with U.S. Commerce Secretary Howard Lutnick during next week’s ASEAN Leaders Summit, focusing on semiconductors and other key export sectors, state news agency Bernama reported.
The talks come as Washington’s 19% tariff on Malaysian exports continues to strain regional trade. Semiconductor exports are currently exempt, but the U.S. national security review could change that. President Donald Trump has proposed a 100% levy on imported chips, excluding firms manufacturing or investing in production within the U.S.
Trade Minister Tengku Zafrul Aziz said negotiations with the United States are ongoing and expected to produce a final tariff agreement during the summit, held from October 26 to 28 in Kuala Lumpur. He added that the deal would likely benefit Malaysia’s industrial, agricultural, and manufacturing sectors tied to U.S. trade and investment.
Malaysia is the sixth-largest semiconductor exporter globally, and industry leaders have warned that any removal of tariff exemptions could damage competitiveness and disrupt global chip supply chains. Other ASEAN members are also set to sign new trade agreements with Washington at the meeting.
Currently, U.S. tariff rates in the region stand at 19%–20%, with Singapore receiving a lower 10% rate, while Laos and Myanmar face 40% tariffs.
TAGS: Malaysia, ASEAN summit, semiconductors, U.S. tariffs, Howard Lutnick, Tengku Zafrul Aziz, Donald Trump, trade policy, Kuala Lumpur, export markets
