KUALA LUMPUR, August 7 – U.S. President Donald Trump has announced a 100% tariff on imported semiconductors and chips, a move that could severely impact Malaysia, one of the world’s largest exporters of electronic components.
The tariff will not apply to companies producing or planning to manufacture in the U.S., but details on the enforcement timeline remain unclear. Trump’s move is aimed at forcing global tech giants to “come home,” citing Apple’s recent $100 billion U.S. investment as a model.
Malaysia exported over RM100 billion (US$23.68 billion) worth of electronics to the U.S. last year, with RM68.5 billion (US$16.2 billion) from semiconductors alone—roughly 20% of U.S. chip imports in 2024.
Industry experts warn the tariff could disrupt Malaysia’s economy and the global tech supply chain, affecting sectors from smartphones to automotive. While firms like Nvidia and TSMC may avoid the tariff due to U.S. factory commitments.
Most Malaysian-based producers could face steep export penalties unless swift policy adaptations or exemptions are secured.
