Johari, Malaysia's chip exports still free of US tariffs, EU trade deal targeted for June 2027

Malaysia's semiconductor exports to the United States still enjoy a tariff exemption, and Malaysia aims to sign the Malaysia-European Union Free Trade Agreement (MEUFTA) at the end of June 2027. Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said so at a press conference for EU-Malaysia Business Day 2026: Selangor in Focus in Kuala Lumpur on 13 October.

No sign of new tariffs

Johari said Malaysia has not received any indication that Washington will impose tariffs on Malaysian semiconductors at this time. "We have not received any indication that the US will impose tariffs on Malaysian semiconductors at this time," he said, as reported by Malay Mail and Bernama.

Four issues in the Section 301 talks

According to Johari, the talks with the US under Section 301 cover four issues: forced labour, excess production capacity, environmental standards and government subsidies.

• Environment and subsidies: "We are fine," he said. Malaysia is not subject to anything because its position is clear.
• Forced labour: this has been finalised. Malaysia is subject to a 10 per cent rate, compared with 12.5 per cent for other countries. Only 17 economies are charged 10 per cent.
• Excess capacity: the only issue not yet finalised. Johari said Malaysia has no excess capacity. He said any excess capacity linked to goods exported from Malaysia could come from third countries, and Malaysia will ask the US for a list of the countries it believes are contributing to the problem so Malaysia can take them off its own list.

MEUFTA targeted for June 2027

At the same press conference, Johari said nearly 80 per cent of the MEUFTA negotiations have been completed, according to Astro Awani. Once the agreement is signed, there will be free market access between Malaysia and the EU. "The more open markets we can access, the better for us," he said.

He said the EU imposes strict environmental requirements on its trading partners. "As long as you can comply, then that is it," he said, adding that every country has its own requirements and Malaysian companies must meet them if they want to enter the market.

About the event

EU-Malaysia Business Day 2026: Selangor in Focus was held alongside the Selangor International Business Summit (SIBS) on 14 to 17 October 2026. The third edition of the event was organised by the EU Delegation to Malaysia with the Selangor state government, Invest Selangor and Eurocham Malaysia. More than 550 EU companies operate in Selangor, with annual revenue of over RM51 billion, according to Bernama.

EU Commissioner for International Partnerships Jozef Sikela, who also attended, said investing alongside Malaysia would strengthen and diversify the semiconductor ecosystem that both economies increasingly depend on. He also said the resumption of MEUFTA negotiations would deepen economic ties further.

Sources

• Malay Mail (Bernama), Malaysia's semiconductor exports remain exempt from US tariffs, says Johari Ghani, 13 October 2026
• Astro Awani, Eksport semikonduktor Malaysia ke AS kekal dikecualikan daripada tarif, kata Johari, 14 October 2026
• Astro Awani, Malaysia sasar meterai MEUFTA akhir Jun 2027, kata Johari, 13 October 2026