Malaysia Grants Zero Tariffs on 61% of Product Lines in MY–US Trade Deal

Malaysia has agreed to eliminate tariffs on 6,911 product lines (61% of its total) under an expanded trade arrangement with the United States. According to MITI Minister Tengku Zafrul at a press briefing, this includes 1,347 industrial goods and 191 agricultural goods that will be granted zero-tariff access for the first time. The remaining product lines already had zero duties before the deal.

This offer, covering 98% of Malaysia’s 11,260 tariff lines, aims to deepen bilateral trade and improve US market access. Strategic sectors such as semiconductors and pharmaceuticals will retain duty-free status, while Section 232 tariffs remain under review.

On non-tariff measures, Malaysia agreed to ease halal certification for US beef imports, provided JAKIM standards are met. However, Malaysia rejected US requests to eliminate excise duties on alcohol, tobacco, and vehicles, and refused to fully liberalise import licensing and foreign equity rules.

In commercial terms, Malaysia committed to purchasing 60 Boeing aircraft in two phases, with each tranche valued at USD9.5 billion.

Zafrul also clarified that no exclusive rights were granted to the US over Malaysia’s rare earth supply, dismissing earlier reports as inaccurate. The deal is presented as regionally competitive while preserving Malaysia’s regulatory space.