Malaysia is pushing for tariff exemptions from the United States on a wide range of products, including furniture, automotive, and aerospace goods, as trade officials from both sides work to finalise an agreement before next month.
The discussions follow Washington’s recent decision to impose fresh import duties on certain household items, including a 50% tariff on kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture.
Malaysia is hoping that the US will agree to remove tariffs on its exports and extend exemptions for commodities such as cocoa and palm oil that are not produced domestically in America.
A final decision is expected next month, ahead of US President Donald Trump’s planned visit to Kuala Lumpur for a key regional summit.
US tariffs spark negotiations
The trade negotiations between Malaysia and the United States have accelerated in recent weeks, spurred by Washington’s move in August to impose a 19% tariff on Malaysian imports, according to a Reuters report.
The increase has put pressure on exporters, particularly in the furniture sector, which is one of Malaysia’s largest contributors to manufacturing exports.
The US remains one of Malaysia’s top trade partners, and higher duties could hurt its competitive edge in a market already facing tight margins and rising costs.
Trump’s announcement of steeper tariffs on Thursday has intensified the urgency of Malaysia’s appeal.
The measures specifically targeted the household furnishings industry, creating immediate concerns for Malaysian producers, who count the US as a critical destination for their exports.
According to Malaysia’s trade ministry, exemptions are being sought to safeguard thousands of jobs linked to the furniture and manufacturing sectors.
Focus on non-competing commodities
Beyond manufactured goods, Malaysia is also seeking tariff exemptions for commodities that the US does not produce, including palm oil and cocoa.
Officials argue that these items do not pose a competitive threat to American producers, making them suitable candidates for zero-tariff treatment.
Palm oil, in particular, is a key export for Malaysia, which is the world’s second-largest producer after Indonesia.
If approved, the exemptions could help sustain Malaysia’s commodity trade with the US at a time when global demand has been volatile.
Washington has agreed to review the request and deliver a decision by next month, signalling potential progress in the discussions.
Deal expected before October summit
Prime Minister Anwar Ibrahim underscored the significance of reaching an agreement in a Facebook post on Thursday, noting that both countries are aiming to conclude the negotiations ahead of Trump’s visit to Kuala Lumpur in October.
The trip is tied to the Association of Southeast Asian Nations summit, where trade relations are expected to be a central topic.
The timing highlights the political and economic stakes for both nations. For Malaysia, tariff relief could protect key industries from disruption.
For the US, securing cooperation on trade may help balance its broader strategy in the Asia-Pacific region, particularly as new trade rules and tariffs reshape global supply chains.
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