Putrajaya eyes US tariff exemptions on palm oil, auto and aerospace parts ahead of Trump visit, says Malaysia’s chief negotiator

Putrajaya eyes US tariff exemptions on palm oil, auto and aerospace parts ahead of Trump visit, says Malaysia’s chief negotiator



Miti deputy secretary-general and chief negotiator for the official tariff negotiations Mastura Ahmad Mustafa said apart from commodities, Malaysia also requested zero tariffs for furniture, as well as automotive and aerospace parts and components. — Bernama pic

Friday, 26 Sep 2025 4:03 PM MYT


KUALA LUMPUR, Sept 26 — The United States has agreed to consider granting tariff exemptions — specifically zero tariff rates — on several commodity products not produced in the US, including palm oil and cocoa, which are expected to be finalised next month.

The chief negotiator for the official tariff negotiations, Mastura Ahmad Mustafa, said apart from commodities, Malaysia also requested zero tariffs for furniture, as well as automotive and aerospace parts and components.

Mastura, who is also the deputy secretary-general of the Ministry of Investment, Trade and Industry (Miti), said the US side had conveyed the matter in several prior negotiation sessions.

“As mentioned, we are currently in the process of detailing the agreement on reciprocal tariff. Starting yesterday, we have arranged several virtual sessions with the US to finalise the agreement.


“In these negotiations, the US side indicated that they are open to considering several goods which, in their view, cannot be produced domestically in the United States.

“For such products, they will consider granting exemptions in the form of zero tariffs under this unilateral tariff arrangement,” she told Bernama in an exclusive interview here today.

However, Mastura explained that the agreement, which is expected to be finalised next month, does not include the semiconductor and pharmaceutical sectors, which fall under the United States’ Section 232 of the Trade Expansion Act of 1962. Under the Act, the United States is allowed to impose additional tariffs on the grounds of national security.

On Thursday, US President Donald Trump, through his Truth Social account, announced that the United States will impose a 100 per cent tariff on any branded or patented pharmaceutical product, unless the company is building its pharmaceutical manufacturing plant in America.

Apart from that, Washington would impose a 50 per cent tariff on all kitchen cabinets, bathroom vanities and associated products, as well as a 30 per cent tariff on upholstered furniture.

The US also said it will impose a 25 per cent tariff on all “heavy or big trucks” made in other parts of the world. Those tariffs will be effective on October 1, 2025.

“If we look at the conditions imposed by President Trump, companies that invest in the US would have their companies exempted from duties under Section 232. However, at the same time, we are also trying to negotiate whether Malaysia can be considered for any exemptions from those tariffs,” said Mastura.

Yesterday, Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia aims to conclude the reciprocal trade agreement between Malaysia and the United States before Trump’s visit in October for the 47th Asean Summit and Related Summits. — Bernama