TAWAU, April 10 (Bernama) -- The new tariff rates proposed by the United States for 90 countries, including Malaysia, on April 2 are not expected to significantly impact the prices of the country’s export commodities, especially palm oil.
Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said that this is because the US only imports about one per cent of Malaysia’s palm oil commodities.
However, he cautioned that the impact of the tariffs could potentially disrupt market sentiment and demand for commodities.
“The US is not a major market for Malaysia’s palm oil because the country itself produces soybean oil. If we look at it, the US is a competitor in the oil market. So, it should not affect palm oil that much.
“But it may affect demand because uncertainty is high, so that is why it will impact demand, and exports might drop slightly. However, looking at the tariff rate imposed on Malaysia, which is lower compared to Indonesia’s 32 per cent, it shows that Malaysia’s palm oil remains competitive,” Chan said after launching the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0) here today.
On April 2, Donald Trump announced a series of “reciprocal tariffs” on imports from about 90 countries, which included an overall 10 per cent tax on all imports into the US.
This move directly raised import duties on several of Washington’s key trade partners, including Malaysia, which faced a 24 per cent tariff.
Chan also mentioned that the US had reported a 90-day postponement on tariffs for 75 countries, including Malaysia, and this may provide an opportunity for Malaysia to engage in further negotiations.
“With this 90-day postponement, I am confident that a delegation from the Ministry of Investment, Trade, and Industry (MITI) and the National Geoeconomic Command Centre (NGCC) will be sent to the US to negotiate on this tariff issue,” he said.
Additionally, Chan emphasised the need to diversify palm oil export destinations and reduce reliance on traditional buyers.
“We place great importance on developing markets in regions such as Africa and the Middle East, which are among the areas we target.
“At the same time, we also maintain good relations with our palm oil trading partners such as India, China, and the European Union,” he said.
-- BERNAMA
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