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.
“It all ends up being captured by a fishnet under the total value [of shipments], and 24 per cent is very significant.”
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