KUALA LUMPUR, June 4 — The current 10 per cent tariff imposed by the United States on Malaysian exports is only a temporary measure and will expire after 150 days, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said.

According to the New Straits Times (NST), Johari said a new tariff structure would be determined after ongoing discussions between Malaysia and the US are concluded.

He said Malaysia’s exposure in the negotiations centres mainly on market access capacity and forced labour concerns, while environmental and state subsidy issues do not apply to the country.

“Malaysia does not practise forced labour, but the issue arises from goods imported from third countries where we do not have a mechanism to verify whether forced labour is involved,” he was quoted as saying.

According to the report, Johari said the US had proposed a 10 per cent tariff linked to forced labour concerns, while the final tariff level would depend on the outcome of negotiations on market access capacity.

He stressed that the proposed 10 per cent tariff is not an additional levy on top of the temporary tariff currently being imposed.

“Not on top of what we are paying right now, 10 per cent that is under temporary. My take is very simple. All of this is only not preferable to people who export to the US.

“So the outlook for the reduction of 19 per cent to 10 per cent is better than before. When the 10 per cent that we paid in the last 150 days expires, then this 10 per cent will be replaced,” he told NST. 

Johari told NST that Malaysia is engaging with US authorities to present its position, although the country currently has no legislation covering forced labour practices in third countries.

He said any impact would be felt primarily by exporters shipping goods to the US, as higher tariffs could increase product prices and potentially reduce demand.

However, he noted that the proposed 10 per cent rate remains more favourable than the previous 19 per cent tariff.

“When we export to the US, the tariff is ultimately paid by consumers there. If products become more expensive, orders may decline. But essential products will continue to be sold,” he reportedly said. 

Johari added that the proposed measures remain under discussion and that the final outcome will depend on Malaysia’s negotiations with the US.