Malaysia to discuss semiconductor tariffs with U.S. at ASEAN summit next week
Malaysia plans to hold talks with U.S. Commerce Secretary Howard Lutnick next week on sectoral tariffs, including those on semiconductors, during the ASEAN Leaders Summit in Kuala Lumpur, state media reported on Wednesday.
The discussions come amid rising trade tensions after President Donald Trump’s administration imposed a 19% tariff on Malaysian exports to the U.S. in August. While semiconductors are currently exempt, they remain under review as part of a U.S. national security probe.
Malaysia is the world’s sixth-largest semiconductor exporter, and officials have warned that removing exemptions on chip exports could hurt competitiveness and disrupt global supply chains. Trade Minister Tengku Zafrul Aziz said he expects to finalize tariff negotiations with Washington during the summit, scheduled for October 26–28.
“I will hold discussions with Lutnick. He will also be attending the ASEAN Leaders Summit next week,” Tengku Zafrul told state news agency Bernama, adding that a final tariff agreement could be signed during the event.
The minister said Malaysia’s agriculture, industrial, and manufacturing sectors, as well as those engaged in U.S. trade and investment, are likely to benefit from the upcoming agreement. Several other ASEAN members are also expected to sign bilateral trade deals with Washington at the summit.
Under current U.S. policy, most Southeast Asian nations face tariffs between 19% and 20%, with Singapore receiving a 10% rate, while Laos and Myanmar have been hit with 40% tariffs.