Indirect Tax Alert
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Issue No. 7/2025 | 21 April 2025
Update on US Tariffs on Malaysia
Further to our Indirect Tax Alert Issue No. 5/2025 dated 3 April 2025, we would like to update you on the developments in the United States (US) tariffs on Malaysia.
On 9 April 2025, the US President announced a 90-day pause on the higher rates of ‘reciprocal’ tariffs for all countries except China. This would mean that those countries (including Malaysia) which were initially imposed with tariff rates higher than the 10% baseline tariff would temporarily be subject to the 10% baseline tariff for 90 days starting from 9 April 2025.
On 13 April 2025, the US President’s administration announced that smartphones, computers and other electronics are also exempted from the ‘reciprocal’ tariffs. This announcement clarifies that the effective date of the exemption starts from 5 April 2025 and provides the details of those additional goods exempted.
How can we help?
If you feel overwhelmed by the fast speed of the developments in the US tariffs and the complexity of how the tariffs operate and affect your business, we can help you with the following:
- Provide updates to you for you to stay abreast with the latest developments so that you can make timely decisions for your business.
- Conduct tariff impact assessment to determine the impact of the tariffs have on your business.
- Assist in classifying and valuing the goods your business export to US to avoid any potential breaches under the Fraud Claims Act.
- Proactively engage in binding tariff classification to mitigate disputes at US entry points to ensure smoother trade operations.
- Conduct classification analysis and origin analysis to devise an efficient customs value pricing for the goods.
- Assist in developing customised mitigation strategies for the business in both short and long term through scenarios planning.
If you would like to have more detailed insights and bespoke advice for your business, please do not hesitate to contact us and we would be happy to assist you.
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