Malaysian semiconductor exports retain US tariff exemption
Johari said Washington had given no indication of new semiconductor tariffs, while excess capacity remained unresolved in Section 301 negotiations.
Malaysian semiconductors remain exempt from US tariffs, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said on Oct 13. He said Malaysia had received no indication from Washington that tariffs would be imposed on those exports.
Speaking in Kuala Lumpur at EU-Malaysia Business Day 2026: Selangor in Focus, Johari said discussions with the US under Section 301 addressed forced labour, excess production capacity, environmental standards and government subsidies.
He said the forced labour issue had been settled, with a rate of 10 per cent applying to Malaysia against 12.5 per cent for other countries. Malaysia was among 17 economies charged 10 per cent. He also said Malaysia faced no issues concerning environmental standards or state subsidies.
Excess capacity was the remaining unresolved matter, Johari said, maintaining that Malaysia did not have excess capacity. He said any such capacity linked to exports from Malaysia could originate in third countries, and Malaysia would ask the US to identify the countries concerned.
Johari said exporters needed to meet the rules of their destination markets, noting the EU’s strict environmental requirements. The business event was held in conjunction with the Selangor International Business Summit (SIBS), scheduled for Oct 14 to 17, 2026.
EU Commissioner for International Partnerships Jozef Sikela said investment alongside Malaysia would help strengthen and diversify the semiconductor ecosystem. He also said resumed negotiations on the Malaysia-EU Free Trade Agreement (MEUFTA) would deepen economic ties, and identified Lumut Maritime Industrial City as a potential collaboration opportunity.
