Malaysia seeks to persuade Trump to exempt its chips from customs duties | economy

Prior to US President Donald Trump’s visit to Kuala Lumpur, Malaysia revealed negotiations taking place with Washington aimed at exempting electronic chip exports from US customs duties, in a move that may also pave the way for a new agreement on rare earths.

Malaysian Minister of Investment, Trade and Industry Zafrul Aziz said in an interview with Bloomberg TV, “The US customs duties on Malaysian chips are currently zero, and I hope they will remain so, as it is a very important market for Malaysia.”

Malaysia is currently subject to 19% duties on its exports to America, while Trump is considering imposing duties of up to 300% on chips and semiconductors, which the Malaysian minister described as a “worrying matter,” especially since the United States represents the third largest market for Malaysian chip exports.

Possible agreement in rare metals

Zafrul Aziz indicated during the Association of Southeast Asian Nations (ASEAN) Business Summit that his country may sign a rare metals agreement with America tomorrow, Sunday, during Trump’s upcoming visit, saying: “It is a real possibility.”

The minister explained that his country seeks to strengthen its position in the field of mining and processing rare earth elements, which constitute essential components in electronic devices, electric cars, and green technologies.

He added that Malaysia will continue to cooperate with companies from China, Japan, South Korea and the United States to participate in this sector, while Malaysian Prime Minister Anwar Ibrahim announced earlier this month that the sovereign wealth fund “Khazna Nasional” will partner with international companies in developing final processing projects for these minerals.