Washington’s new tariffs include limited exemptions for semiconductors – a crucial Malaysian export – but industry players fear those exemptions will not cover finished electrical and electronic goods, which, along with chips, accounted for 120.2 billion ringgit (US$26.7 billion) worth of US-bound exports in 2024.
“Unless you ship pure semiconductors back to the US, chips that go into products like phones, for example, will fall under the 24 per cent [tariff],” said Wong Siew Hai, president of the Malaysian Semiconductor Industry Association (MSIA), referring to the tariff rate set for Malaysia.
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World leaders react to Trump’s new tariff blitz as global trade war escalates
World leaders react to Trump’s new tariff blitz as global trade war escalates
“It all ends up being captured by a fishnet under the total value [of shipments], and 24 per cent is very significant.”
