Malaysia Faces 24% US Tariff: Rates & How It Affects Busineses

Starting 9 April 2025, the US is adding a 24% tax on many Malaysian products — from electronics to palm oil.

This means anything we export there will be more expensive for US buyers.

The goal? To push American companies to buy more local goods or change trade deals.

Now, why should you care? Well, if your business sells products to the US or depends on suppliers who do, this could hit your bottom line.

Your goods might suddenly cost 24% more in the US market — and that could lower demand, affect profits, or disrupt your supply chain.

The US is one of Malaysia’s biggest trade partners, so this isn’t a small deal. Let’s look at what this could mean for your business — and what you can do next.

What is Happening with US Tariffs?

On April 3, 2025, the US announced a major update to its trade policy called “reciprocal tariffs.”

Under this policy, countries are charged similar tariff rates that they apply to US goods.

This means if a country charges high duties on US products, the US will now apply similar rates in return.

Malaysia is included in this list. Starting April 9, 2025, goods exported from Malaysia to the US may face a 24% import tariff.

This is more than double the usual baseline of 10% applied to other countries.

Not all products are affected; some items like semiconductors are exempt, but many others are now more expensive to export.

Why This Matters for Malaysian Business

These tariffs can increase costs and reduce profit margins. Industries such as electronics, furniture, palm oil, and machinery may face higher barriers when selling to the US.

Even if your company is not directly exporting, you may still be affected. For example:

You supply parts to another company that ships to the US.
Your pricing depends on raw materials that pass through US customs.
Your contracts are based on older tariff estimates.

Ignoring these changes could result in higher operational costs or issues with customs compliance.

It’s important for employers to review their trade exposure and make necessary adjustments.

What is a US Tariff Listing Notice?

A US tariff listing notice is an official document that announces changes to import duties on goods entering the United States.

These notices are issued by the United States Trade Representative (USTR) and published in the Federal Register.

The purpose of the notice is to:

Inform businesses and customs officials about new or updated tariffs.
Provide details on which products are affected.
Set effective dates for when the tariffs begin.
Include any exclusions or exemptions for specific goods.

For Malaysian exporters, the tariff listing notice is an important reference point.

It helps you check whether your products are affected by the new 24% tariff rate or if they fall under an exempted category such as semiconductors.

How Much Should Malaysia Pay to the US?

Most Malaysian exports to the US are subject to a 24% import tariff.

This rate was introduced under the US reciprocal tariff policy and is higher than the 10% baseline tariff applied to other countries not on the targeted list.

Products Affected

Not all goods are covered. Based on current information:

Electronics (such as semiconductors) are exempt from the 24% tariff.
Other products, like machinery, palm oil derivatives, furniture, and textiles, may be affected by the new rate.

Example of the New Tariff Calculation

Let’s say you export furniture to the US worth RM100,000. Under the new tariff rate:

24% of RM100,000 = RM24,000
That means an additional RM24,000 in import duties must be paid when the goods enter the US.

If you previously budgeted for a lower tariff, this change could significantly reduce your profit margin or increase the price of your product in the US market.

How to Know Your Product's Tariff

To check whether your product is affected:

Identify your HS (Harmonized System) code.
Cross-check the code with the latest USTR tariff listing.
Review if your item is listed under the 24% rate or exempted.

Businesses that export a high volume of goods to the US should monitor these changes closely and calculate the potential cost impact in advance.

When is it Applicable?

The US tariff listing is applicable once goods enter US customs, not at the time of export from Malaysia.

This means your product will be taxed at the US port of entry, based on its classification and country of origin.

What Triggers the Tariff?

Two key factors trigger the tariff on Malaysian goods:

1. HS Code (Harmonized System Code)

Every product has a unique HS code that determines its category. The tariff rate is tied to this code.

For example, electronic parts may be exempt, while finished machinery may fall under the 24% tariff rate.

2. Country of Origin

Since the US has applied country-specific reciprocal tariffs, goods originating from Malaysia will be reviewed under the 24% rate (unless exempted).

The country of origin must be clearly stated in shipping and customs documentation.

Effective Date

The higher tariff rates came into effect on April 9, 2025, according to the US government’s trade notice.

A baseline 10% tariff for all countries was introduced earlier on April 5, but Malaysia is subject to the higher rate from April 9 onwards.

Employers and exporters should review shipping schedules, HS codes, and product origins carefully to avoid delays or unexpected charges when entering the US market.

Malaysia-US Tariff Compared to SEA Countries 2025

Malaysia is not the only Southeast Asian country affected by the new US tariff listing.

Other countries in the region are also facing higher rates, but the percentages vary.

This comparison helps Malaysian employers understand how their position stacks up regionally.

Here is a summary of the US reciprocal tariffs imposed on SEA countries:

Country	US Tariff Rate (2025)	Tariff These Countries Charge on US Goods
Malaysia	24%	47%
Vietnam	46%	90%
Cambodia	49%	97%
Thailand	36%	72%
Indonesia	32%	64%
Philippines	18%	34%
Singapore	10% (baseline)	10%

From the table, we can see that Malaysia’s 24% rate is moderate compared to Vietnam and Cambodia, which face tariffs above 45%.

However, it’s still more than double the 10% baseline rate and higher than Singapore, which retains the minimum charge.

How to Read a Tariff Listing Notice

For Malaysian exporters and logistics teams, understanding a US tariff listing notice is key to staying compliant and avoiding surprise costs.

These notices are typically issued by the United States Trade Representative (USTR) and published in the Federal Register.

Here’s how to read and interpret them effectively:

1. Understand the Product Classification

The notice will list affected products based on their HS (Harmonized System) code.

You need to match your product’s HS code to those listed in the tariff notice to see if your item is affected.

For example, if you export palm oil derivatives, search for the HS codes related to palm-based chemicals or processed oils.

If your product is not listed, it may not be affected, or it could be included under a general category.

2. Check the Effective Date

The notice will state when the tariff begins. In the case of the latest US tariff listing, April 9, 2025 is the effective date for Malaysia’s 24% duty.

Shipments arriving at US customs on or after this date will be charged based on the new rate.

3. Look for Exemptions or Exclusions

Some goods may be excluded from the tariffs. For Malaysia, semiconductors are one known example of exempted products.

These exemptions are typically listed in a separate section of the notice or mentioned in a follow-up publication.

Always review the full document and consult a freight forwarder or trade advisor to verify if your product qualifies for any exclusions.

Why Employers Should Pay Attention

The US tariff listing is a cost factor that can directly affect your business operations, pricing, and long-term planning.

Here’s why Malaysian employers and exporters should take this seriously:

Higher Costs

If your goods are now subject to the 24% tariff, your export cost to the US market has just increased.

This could affect your profit margin, especially if you’ve already committed to pricing in contracts or quotations.

For manufacturers and exporters, this might mean absorbing the extra cost, renegotiating deals, or increasing prices, all of which impact your bottom line.

Supply Chain Disruptions

Companies that rely on US-bound shipments, even indirectly. might face delays or added customs checks.

For example, if your components are shipped to a US-based assembler, that partner might start looking for cheaper alternatives elsewhere if your goods become too costly.

Compliance Risks

If your HS code classification is incorrect or outdated, it could lead to misdeclarations at customs, which may result in fines, penalties, or shipment delays.

With the new tariff in place, US customs authorities are likely to increase their enforcement activities.

Strategic Planning

These tariff changes also highlight the importance of long-term trade strategy. Employers may need to review:

Whether to shift production to different markets.
How to diversify export destinations.
If it’s time to revisit pricing models or sourcing methods.

In short, employers can’t afford to treat tariff notices as background noise.

These changes directly impact cost structures, competitiveness, and operational planning, especially for export-focused businesses.

Recent Examples and Trade Tensions

The latest US tariff listing is not happening in isolation. It’s part of a larger trend in global trade where tariffs are increasingly used as political and economic tools.

Malaysian exporters need to understand these changes in context.

US-China Trade Tensions

The US-China tariff war over the past few years is a clear example.

The US imposed up to 25–34% tariffs on many Chinese goods, and China responded with its own restrictions.

This disrupted global supply chains, raised prices, and forced companies worldwide to rethink where they source materials or manufacture products.

Impacts on Malaysian Exports

Now, countries like Malaysia, Vietnam, Indonesia, and others are also affected.

Malaysia was hit with a 24% reciprocal tariff, targeting exports where the US claims it faces trade imbalance.

While semiconductors are exempted, other key exports like electrical components, palm oil-based goods, machinery, and furniture could face cost increases.

In the same announcement, Vietnam was hit with a 46% tariff, Cambodia 49%, and Indonesia 32%.

This shows how Southeast Asian countries are also becoming part of broader US trade enforcement strategies.

These changes signal a more protectionist approach from the US, where trade relationships are now tied to tariff symmetry and perceived fairness.

Even countries that previously had stable export channels to the US are now being re-evaluated.

How Employers Can Prepare and Respond

With the new US tariff listing in effect, Malaysian exporters must act quickly to reduce risks and protect profit margins.

While some goods may still be exempt, the majority of products face new cost pressures.

Below are ways in how businesses can respond effectively:

Reassess Sourcing Strategies

Review where your raw materials or components are coming from.

If your current supply chain depends heavily on US-bound shipments, consider diversifying to other markets or suppliers.

This reduces exposure and gives you more flexibility if tariffs rise again.

Explore Alternative Markets

If the US becomes too expensive or unpredictable due to tariffs, look for other export destinations.

ASEAN, the Middle East, or even emerging African markets could be strong alternatives depending on your industry.

Work with Freight Forwarders and Customs Brokers

These professionals can help you classify goods correctly, understand new documentation requirements, and identify whether your product is exempt or subject to tariffs.

They are also helpful in adjusting routing strategies to avoid unnecessary costs.

Update Contracts and Pricing

If your current contracts are based on old pricing without the new 24% tariff included, you may need to revise them.

Talk to clients or US-based partners about cost-sharing, timeline extensions, or contract modifications. Transparency is important to maintain trust and avoid disputes.

Where to Find US Tariff Listings

To stay updated on the latest US tariff listing changes, Malaysian employers and exporters should refer to official and trusted sources.

Tariff policies can change quickly, and missing a new announcement could lead to unexpected costs or delays.

United States Trade Representative (USTR) Website

The USTR website is the main source for official tariff listing notices, trade actions, and updates. This is where all announcements are published, including:

New tariff rates by country
Lists of affected product categories (by HS code)
Exemption notices or updates

Website: https://ustr.gov

The Federal Register

All tariff changes are formally published in the Federal Register, which is the official journal of the US government.

You can search by keywords like “Malaysia tariffs” or “reciprocal tariff notice.”

Website: https://www.federalregister.gov

Malaysian External Trade Development Corporation (MATRADE)

MATRADE provides updates for Malaysian businesses, including guidance on how international trade changes impact local exporters.

They often publish summaries and offer support services to businesses that need help adjusting to new rules.

Website: https://www.matrade.gov.my

Trade Advisors and Industry Associations

Private customs brokers, logistics providers, and industry associations can also help interpret tariff notices, especially if you need to act quickly or respond to a product-specific change. They may also offer templates, training, or updates through email alerts.

FAQ

Are Malaysian products affected by US tariffs?

Yes. As of April 9, 2025, Malaysian goods exported to the US are subject to a 24% import tariff under the US reciprocal tariff policy. However, not all products are affected.

For example, semiconductors have been exempted from this new tariff. Businesses must check product-specific HS codes to confirm their status.

Can we apply for tariff exclusions?

Some products may qualify for exemptions or temporary exclusions under USTR guidelines. These are often published in follow-up notices. Exporters must regularly check the USTR website and consult with customs brokers or legal advisors to see if their products are listed under exemptions.

What industries are most vulnerable?

Industries that heavily export to the US are most affected, especially those dealing in:

Electrical and electronic components (except exempt items)
Machinery and industrial equipment
Palm oil derivatives
Furniture and textiles

These sectors are likely to face higher costs or reduced competitiveness in the US market.

How often are these notices updated?

There is no fixed schedule. Tariff listings are updated based on policy decisions, trade negotiations, or enforcement changes. Businesses should monitor:

The USTR website: https://ustr.gov
Official Federal Register announcements: https://www.federalregister.gov
Updates from MATRADE or relevant trade associations: https://www.matrade.gov.my

Facing the 24% US Tariff? Strengthen Your Local Team Now

With rising export costs and supply chain risks, it’s time to focus on what you can control — your workforce.

Build a strong, cost-efficient local team to help your business stay competitive.

Post your jobs today on Maukerja and Ricebowl by AJobThing — and connect with quality Malaysian talent fast.

Hire smart. Stay resilient.