Several Malaysian exporters of manufactured goods have temporarily halted their shipments to the US pending clearer information on the financial implications of the new tariffs.
Sectors affected include furniture, textiles and electrical components. Meanwhile, sectors not affected such as glove manufacturers and semiconductor companies are still postponing shipments for now.
Furniture exporters reported receiving instructions over the past week to delay shipments until the tariff situation becomes clearer.
For now, US importers still do not know the exact value of how much they will have to pay after the tariffs are imposed and they have told their suppliers to delay shipments.
Malaysian exporters also do not want to ship their goods until the administrative procedures, especially regarding additional charges resulting from the tariffs, are resolved.
One exporter explained that there are thousands of different codes for each product imported by the US, which have been developed in stages over several years.
Any administrative changes are usually handled by the US Department of Commerce.
Before the tariff issue arose, the tax rate imposed on importers was less than 7%. They were unaware of the new rate. While waiting for further clarity, they were using existing stocks to meet customer demand.
Manufactured goods are the basis of Malaysia’s exports, contributing 85% of the total, estimated at RM1.6 trillion by 2025.
According to the Malaysia Economic Outlook 2025 Report, the country’s exports to the US have increased. The average value between 2018 and 2020 was RM98.8 billion which increased to RM159.9 billion between 2021 and 2023
