Malaysia Import Duty & Tariff Guide 2026
Malaysia is the world's third-largest semiconductor exporter and produces ~70% of global hard disk drives. Most Malaysian electronics enter the US at 0% MFN under the Information Technology Agreement (ITA). No Section 301 tariffs apply. Since 24 July 2026 Malaysia is in the 10% tier of the forced-labor Section 301 tariff, but chips, HDDs, palm oil and LNG are exempt from it.
The Section 122 surcharge expired on 24 July 2026. The forced-labor Section 301 tariff replaced it the same day: 10% on Malaysian goods, on top of MFN. Computers, phones, chips, energy and Section 232 goods are exempt. Current US tariff regime →
US Import Duties on Malaysian Products (2026)
| Product | HTS | MFN | +Forced-labor | 2026 total | Note |
|---|---|---|---|---|---|
| Integrated circuits / semiconductors | 8542.31 | Free | Exempt | 0% | ITA-covered; Malaysia is top IC packaging hub (Penang) |
| Printed circuit boards | 8534.00 | Free | 10% | 10% | ITA; major PCB manufacturer |
| Hard disk drives (HDD) | 8471.70 | Free | Exempt | 0% | ITA; Malaysia produces ~70% of global HDDs |
| Optical/photonic components | 8541.49 | Free | Exempt | 0% | ITA-covered; fiber optics components |
| Palm oil (crude) | 1511.10 | Free | Exempt | 0% | Malaysia is world's #2 palm oil producer |
| Rubber gloves (medical) | 4015.12 | Free | 10% | 10% | Malaysia dominates global medical glove supply |
| LNG (liquefied natural gas) | 2711.11 | Free | Exempt | 0% | Major LNG exporter; MFN 0% |
| Furniture (wooden) | 9403.60 | Free | 10% | 10% | Malaysia is top furniture exporter to US |
| Cocoa butter | 1804.00 | Free | Exempt | 0% | Cocoa grinding/processing hub |
| Apparel (knit) | 6109.10 | 16.5% | 10% | 26.5% | No FTA; MFN + 10% forced-labor tariff |
| Steel wire rod | 7213.91 | Free | — | 50% | Section 232 steel (50%) replaces the forced-labor tariff |
ITA = Information Technology Agreement (WTO). Steel row shows Section 232 at 50%, which replaces the forced-labor tariff. MPF applies per shipment.
Malaysia Import Duty — FAQs
Does the US have a free trade agreement with Malaysia?
No. The US and Malaysia negotiated toward a Trans-Pacific Partnership (TPP) deal, but the US withdrew from TPP in 2017. The successor CPTPP agreement (which covers Malaysia and 10 other Pacific nations) does not include the US. Malaysian goods enter the US under MFN rates — there is no US-Malaysia bilateral FTA. However, most of Malaysia's core exports (electronics, semiconductors, HDDs) benefit from ITA zero-rating, making the FTA gap less impactful for electronics importers.
Why do Malaysian electronics enter the US at 0%?
Two reasons. The WTO Information Technology Agreement sets 0% MFN duty on semiconductors, hard disk drives, PCBs and optical components. And the forced-labor Section 301 tariff (10% for Malaysia since 24 July 2026) exempts computers, storage devices, chips and most semiconductor devices under HTSUS U.S. note 52. So Malaysian chips and HDDs enter duty-free, while printed circuit boards, medical gloves and furniture pay 10%.
Is Malaysia subject to Section 301 tariffs?
Not to the China lists, which apply to Chinese goods only. Malaysia is in the 10% tier of the separate forced-labor Section 301 tariff, but most of its big exports are exempt from it: chips, hard disk drives, palm oil, LNG and cocoa butter. Chips pay 0% from Malaysia against 50% from China.
Is Malaysia exempt from Section 232 steel and aluminum tariffs?
No. Malaysian steel and aluminum pay the full Section 232 rate — 50% on the whole customs value since 6 April 2026 (25% for derivative articles) — which replaces the forced-labor tariff for those goods. Steel is a small Malaysia-US flow; the big exports (electronics, palm oil, rubber gloves, LNG, furniture) are outside Section 232.
What is Malaysia's role in the global semiconductor supply chain?
Malaysia is the world's third-largest semiconductor exporter. The Penang and Kulim industrial zones house major fabs and packaging/test operations for Intel, Infineon, Bosch, Renesas, Osram, and many others. Malaysia specializes in advanced semiconductor packaging, PCB assembly, and chip testing — the final stages of the semiconductor manufacturing process. Many US-brand chips are physically processed in Malaysia even when designed in the US or manufactured in Taiwan or South Korea.
How does Malaysia's HDD concentration affect US importers?
Malaysia produces roughly 70% of the world's hard disk drives, in factories run by Western Digital, Seagate and Toshiba, so US importers of storage devices depend heavily on Malaysian production. HDDs (HTS 8471.70) pay 0% MFN and are exempt from the forced-labor tariff, so they enter duty-free.
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