Malaysia has announced that it is in talks with the United States to exempt electronic chips from the tariffs imposed by President Donald Trump, as it prepares to sign a trade agreement with Washington on Sunday.
Malaysian Minister of Investment, Trade, and Industry Zafrul Aziz stated in an interview with Bloomberg TV that “the current rate is zero, and I hope it stays that way.” He emphasized that the U.S. market is “very important for Malaysia.”
Malaysia has faced a 19% tariff on its exports to the United States, while Trump is considering imposing tariffs of up to 300% on semiconductors, which raises concerns for Malaysia, the sixth-largest chip exporter in the world. The United States is the third-largest market for Malaysia’s semiconductor exports.
Potential Agreement on Critical Minerals
Zafrul hinted at the possibility of signing an agreement with the United States regarding critical minerals, coinciding with Trump’s visit to Kuala Lumpur for the annual ASEAN summit.
In a live interview on the sidelines of the ASEAN Business Summit, Zafrul responded to a question about whether Malaysia would sign such an agreement with Trump, saying, “It’s possible.”
Malaysia is seeking to enhance its capabilities in mining and processing rare earth minerals to capitalize on the increasing demand for these minerals used in electronics, electric vehicles, and green technologies like lithium batteries.
Zafrul confirmed that Malaysia will continue to collaborate with companies from China, Japan, South Korea, and the United States in the rare minerals sector.
Additionally, Prime Minister Anwar Ibrahim announced earlier this month that the sovereign wealth fund, Khazanah Nasional, will cooperate with global companies in the advanced stages of rare minerals processing.
_______________________________________________________________________________________________________
Check out the latest Stocks and Indices News.
Check out the latest Commodities News.
Check out the latest Cryptocurrency News.
Check out the latest Energy News.
