Where did US get 24pc tariff from? Tengku Zafrul says actual import duties average only 5.6pc
The minister said the government denies claims that Malaysia has imposed a 47 per cent tariff on US imports, clarifying that the actual average tariff stands at about 5.6 per cent, based on the simple average most favoured nation (MFN) applied rate. — Picture by Firdaus Latif
Monday, 07 Apr 2025 4:43 PM MYT
KUALA LUMPUR, April 7 — Malaysia is seeking clarification from the United States (US) over the 24 per cent retaliatory tariff announced by US President Donald Trump, said Investment, Trade and Industry Minister Datuk Tengku Seri Zafrul Abdul Aziz.
The minister said the government denies claims that Malaysia has imposed a 47 per cent tariff on US imports, clarifying that the actual average tariff stands at about 5.6 per cent, based on the simple average most favoured nation (MFN) applied rate.
“We totally disagree with the basis for calculating this tariff, and we sought clarification on it from the US ambassador and his team this morning.
“This inaccurate basis for calculation has resulted in Malaysia being subjected to a retaliatory tariff of 24 per cent,” he told a press conference on the impact of US tariffs here today.
Tengku Zafrul stressed that Malaysia would not respond with retaliatory measures against US products.
He said the government remained committed to securing a fair resolution that preserves market access, attracts foreign investment, and supports the well-being of Malaysian businesses and workers.
“I would like to stress that Malaysia aims to continue being a reliable trading partner, open to trade and investment, while valuing all economic partnerships, including our ties with traditional partners like the US and China.
“We are an open, trading economy,” he added. — Bernama
MAGA types never have been good at Maths.
ReplyDeleteTrump's formula
ReplyDelete(M'sia goods export value to US)/(M'sia goods import value from US) then divide by 2 =~24%
Yet, Trump claims Malaysia has imposed a 47 per cent tariff on US. That 47% figure must be just the goods deficit value.
MFN tariff is a normal non-discriminatory tariff charged on imports (excludes preferential tariffs under free trade agreements and other schemes or tariffs charged inside quotas).
"actual average tariff stands at about 5.6 per cent, based on the simple average most favoured nation (MFN) applied rate"
If the yellow tinted minister is saying the truth, then the services deficit must be in favor of the US - that's no surprises as US is a major dominant i
services provider allover the globe.
Since the actual service value r NOT mentioned by both country, the guess is someone has forewarned someone in order to play this deficit game.
Send him to Washington as Ambassador. He will sort this out.
ReplyDelete