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Backing Johari: Why the 10% US Tariff Is Unlikely to Derail Malaysia’s Export Strength

Published July 25, 2026 at 8:32 AM UTC

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Supporters of Minister Johari Abdul Ghani's assessment argue that the 10% US tariff is a manageable challenge for Malaysia's economy. They point out that the tariff is relatively low compared to those faced by other trading partners, and that key export sectors such as electronics, rubber gloves, and palm oil enjoy strong global demand that is unlikely to fade. Malaysia's trade agreements with other countries, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), provide alternative markets. The exemption of several product categories from the tariff further limits the damage. Backers also note that Malaysia's manufacturing sector has proven resilient in past trade disputes, adapting quickly to new conditions. They believe the government's proactive measures, including trade promotion missions and investment incentives, will sustain export growth. In this view, the tariff is a minor speed bump, not a roadblock, and Malaysia's diversified economy and solid fundamentals will see it through.