KUALA LUMPUR — More than 1,700 Malaysian export products to the United States will soon enjoy a zero-per cent tariff following the signing of a new Reciprocal Trade Agreement between both countries, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz announced today.
The list covers 1,711 products, including palm oil, rubber, cocoa, and selected pharmaceutical and aerospace components, which together make up around USD5.2 billion, or 12% of Malaysia’s total exports to the US.
“The zero-tariff will take effect within 60 days after both countries exchange the legal documents,” Tengku Zafrul told reporters during a press conference.
A joint statement by Kuala Lumpur and Washington confirmed that the United States has identified the products listed under Annex III to Executive Order 14346, dated September 5, 2025, as eligible for zero per cent reciprocal tariffs.
The US will also maintain at 19% the reciprocal tariffs outlined in Executive Order 14257, issued on April 2, 2025, covering goods originating from Malaysia.
Asked if Malaysia was disappointed that some tariffs remain, Tengku Zafrul said the government is “satisfied” with the outcome.
“We are satisfied because what was offered before stays for Malaysia. But we are also glad that on some tariff lines, we managed to get more than what was discussed before,” he said.
He noted that the agreement formalises what had already been agreed in principle earlier this year and represents an improvement on prior terms.
“The US has given better access compared to what was before, along with commitments to access their market. So what has been given to us was better than what was agreed verbally or announced before,” he added.
When asked whether the deal was final, Tengku Zafrul said Malaysia expects the terms to hold.
“For us, an agreement is an agreement, and we hope that this holds. And, of course, if it changes, we hope it is for the better,” he said. — October 26, 2025