Zafrul: US likely to view ART positively, especially in strategic sectors
09/11/2025 (The Edge Malaysia), Kuala Lumpur - The United States is anticipated to view the Agreement on Reciprocal Trade (ART) favourably in the upcoming negotiations, especially concerning important national sectors like semiconductors, according to Investment, Trade and Industry Minister (MITI) Tengku Datuk Seri Zafrul Abdul Aziz.
He noted that discussions are still ongoing regarding sectoral tariffs, where, under Section 232, the US has stated that further talks are needed for several other sectors it deems strategic.
“We need to look at the bigger picture. The 1,711 types or categories of products covered under the trade agreement’s tariff schedule cover around 12% of our total exports by value. At the same time, this could expand further as these products will subsequently be exempted from the 19% tariff.
“We have demonstrated through this agreement that Malaysia is a reliable and trusted partner in their supply chain, especially in strategic sectors such as semiconductors, aerospace, pharmaceuticals, and others,” he said in a post on X on Saturday.
Zafrul said the agreement, which reflects Malaysia’s role as a dependable and trusted supply chain partner for the US, will further strengthen the local ecosystem and industries involved in supply chains to that country, particularly as supply chain security has become an important aspect of economic security.
He was responding to certain groups that believed that Malaysia’s tariff exemption deal — covering around 1,700 product lines — benefits US importers more than Malaysia.
Malaysia and the US signed the ART on Oct 26, 2025, during the 47th Asean Summit in Kuala Lumpur.
The agreement allows up to 1,711 Malaysian products, including palm oil, rubber, cocoa, as well as pharmaceutical components and aerospace equipment, to be exported to the US at reduced tariff rates from the current 19%.