KUALA LUMPUR, August 2 — What happens when something we produce here in Malaysia gets caught up in a web of global tariffs? It ends up coming back to us — more expensive than ever.
A newly imposed 19% tariff by the United States on most Malaysian exports is causing a ripple effect that hits closer to home than you might think. While exporters feel the pressure, everyday Malaysians could soon be paying the price — literally — for products that started out right here in our own backyard.
Let’s take something simple and essential: rubber gloves. Say a glove costs RM1 to produce in Klang. Once it arrives in the US, it gets taxed — 19% — bumping the cost up to RM1.19. Then, by the time it passes through US importers, distributors, and retailers, it might sell for RM2.49.
But here’s where it gets more frustrating.
That same glove, now repackaged by a multinational company — perhaps as part of a first aid kit — might be shipped back to Malaysia and end up on our shelves for RM2.89. That’s nearly three times what it originally cost, and we’re paying the difference.
“Global supply chains are incredibly complex,” said Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd. “Products can travel between countries multiple times, each trip adding costs along the way.”
This complexity means that Malaysian-made goods — once affordable — can re-enter the country under international brand labels at inflated prices. The cost isn’t just in shipping or packaging; it’s the compounded effect of tariffs, markups, and corporate margins.
So, what products are affected?
Quite a few, especially from sectors where Malaysia has long been a global leader:
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Rubber gloves – Essential for healthcare worldwide; major producers include Top Glove Corp.
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Furniture – A significant export to US retailers.
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Solar panels – Made in Malaysia, then often re-exported.
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Machinery components – Critical to global manufacturing chains.
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Palm oil-based products – Found in foods, cosmetics, and industrial uses.
While there’s some hope that semiconductors may be exempt due to their strategic importance, most other sectors are not so lucky.
Malaysia–US Trade Snapshot
The United States has been Malaysia’s third-largest trade partner since 2015. In 2024, our trade volume surged nearly 30% to RM324.91 billion. Exports to the US hit a record RM198.65 billion — mostly electrical and electronic goods, machinery, and rubber products. Imports from the US also climbed, reaching RM126.26 billion, largely in similar sectors.
What does this mean for you?
This isn’t just a problem for companies and policymakers — it’s about you, your family, your wallet.
When global trade gets more expensive, those costs have a way of finding their way back to the consumer. That lotion you love, that kitchen appliance you rely on, even that solar panel on your roof — if it once passed through the US, you’re likely paying more for it now.
We may pride ourselves on being a manufacturing hub, but if global trade rules aren’t fair, we risk paying a premium for our own products — made right here in Malaysia.
