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Malaysia warns 100,000 e-jobs at risk due to US tariffs

  • By Al Mayadeen English
  • Source: News Websites
  • 4 Aug 2025 21:56
2 Min Read

Malaysia warns that up to 100,000 electronics jobs are at risk due to US tariffs, even as it strikes a deal with Washington to cut duties and buy Boeing aircraft.

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  • An electronic board displays stock prices at a private stock market gallery in Kuala Lumpur, Malaysia, Friday, Nov. 30, 2018. (AP)
    An electronic board displays stock prices at a private stock market gallery in Kuala Lumpur, Malaysia, Friday, Nov. 30, 2018. (AP)

Malaysia could lose up to 100,000 jobs in its vital electronics sector if new US tariffs limit exports to the American market, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz warned on Monday.

“Any changes in US trade policy cannot be taken lightly, as they could have a negative impact on Malaysia’s economy… It is estimated that up to 100,000 workers, particularly in Penang and Kedah, could be at risk of losing their jobs if electrical and electronic products can no longer be exported to the US due to high tariffs,” Zafrul told the Malay Mail.

The United States remains Malaysia’s largest export destination and a major investor. In 2024, Malaysia exported goods worth 198.65 billion ringgit (approximately $46.9 billion) to the US, while American investments in the country totaled 32.82 billion ringgit (around $7.74 billion).

The minister also raised concerns over the possibility that Washington could introduce additional tariffs under the pretext of national security, further threatening Malaysia’s trade stability.

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Trade deal includes Boeing purchase, tariff reduction

Despite these concerns, Zafrul welcomed US President Donald Trump’s recent decision to reduce tariffs on Malaysian goods from 25% to 19%, calling it a “significant achievement” for Malaysia. As part of the trade arrangement, Malaysia agreed to purchase 26 Boeing aircraft valued at $19 billion.

As part of the broader agreement, Malaysia has taken several steps to align with US trade demands.

These include:

  • Eliminating a 6% tax previously applied to US digital companies
  • Committing to stricter controls on the re-export of US-made AI chips
  • Pledging not to restrict exports of rare-earth minerals to the US

However, Malaysia declined US requests to exempt American agricultural and industrial products from local sales and excise taxes.

Read more: Trump-led tariffs, labor strains begin to hit US economy: WSJ

  • US tariffs
  • United States
  • economy
  • Malaysia
  • Donald Trump

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