Cover image via Tengku Zafrul (Facebook)
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Up to 1,711 Malaysian export products to the US will soon enjoy tariffs below 19% under the Agreement on Reciprocal Trade signed between Malaysia and the US on Sunday, 26 October
Investment, Trade, and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said the list includes palm oil, rubber, cocoa, as well as some pharmaceutical components and aerospace equipment, according to The Edge.
"These exports collectively amount to about USD5.2 billion (RM21.96 billion) of our exports to the US, which is about 12% of our total exports," he was quoted as saying by the business and financial news publication.
Tengku Zafrul said the lower tariffs will take effect within 60 days after both countries complete the document exchange required by the legal process
In a joint statement on Sunday, Putrajaya and Washington said that the US has identified products listed under Annexe III to Executive Order 14346, dated 5 September 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a 0% reciprocal tariff rate.
It also said that the US has committed to maintaining reciprocal tariffs at 19% for Malaysian-origin goods, as outlined in Executive Order 14257 of 2 April 2025, as amended.
Asked if Malaysia was disappointed, Tengku Zafrul replied:
"No, we are not disappointed. In fact, we are satisfied because what was offered before stays for Malaysia. But what we are quite glad about is that we didn't have to backtrack on any of what we agreed on before.
And we are also happy that on some of the tariff lines, we managed to get more than what was discussed before."
According to Tengku Zafrul, the agreement inked on Sunday contains the same points previously shared by his ministry in Parliament, and the signing marks the conclusion of earlier negotiations, making the deal official.
"As I mentioned before, this agreement has already been agreed upon before, and this is the official agreement that has been done in writing.
"In fact, the US has given better access compared to what was before, and also (along with) some commitments to access to their market. So, what has been given to us was better than what was agreed verbally or announced before," he said.
Asked if he was confident the deal is "final", Tengku Zafrul said: "For us, an agreement is an agreement, and we hope that this holds. And, of course, if it changes, we hope that it is for the better."
This follows Malaysia's announcement that it would exempt all US agricultural and seafood products from the Sales and Service Tax (SST) under the same trade deal, a move expected to make certain imported American foods cheaper for Malaysian consumers.
