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Country Tariff Guide

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. In 2026, the Section 122 flat 10% surcharge is the primary duty burden — expiring July 24.

Updated June 2026·5 min read
0%
ITA electronics rate
Semiconductors, HDDs, PCBs
None
Section 301
China-only tariff
+10%
Section 122
Until July 24, 2026
None
US FTA
MFN rates apply

Section 122 expires July 24, 2026. Malaysian electronics at 0% MFN return to true 0% effective duty if S122 lapses — a meaningful saving on high-volume semiconductor imports. Guide →

US Import Duties on Malaysian Products (2026)

ProductHTSMFN+§1222026 totalNote
Integrated circuits / semiconductors8542.31Free10%~10%ITA-covered; Malaysia is top IC packaging hub (Penang)
Printed circuit boards8534.00Free10%~10%ITA; major PCB manufacturer
Hard disk drives (HDD)8471.70Free10%~10%ITA; Malaysia produces ~70% of global HDDs
Optical/photonic components8541.40Free10%~10%ITA-covered; fiber optics components
Palm oil (crude)1511.10Free10%~10%Malaysia is world's #2 palm oil producer
Rubber gloves (medical)4015.19Free10%~10%Malaysia dominates global medical glove supply
LNG (liquefied natural gas)2711.11Free10%~10%Major LNG exporter; MFN 0%
Furniture (wooden)9403.60Free10%~10%Malaysia is top furniture exporter to US
Cocoa products1806.10Free–0.52¢/kg10%~10–11%Cocoa grinding/processing hub
Apparel (knit)6109.1016.5%10%~26.5%No FTA; standard MFN + S122
Steel wire rod7213.91Free10%~35%S232 25% applies; Malaysia not exempt

ITA = Information Technology Agreement (WTO). Steel row shows S232 25% + S122. 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%?

The Information Technology Agreement (ITA), a WTO agreement, sets 0% MFN duties on a broad list of electronic products including semiconductors, PCBs, hard disk drives, and optical components. Malaysia is one of the world's largest electronics manufacturing hubs — Penang is sometimes called the 'Silicon Valley of the East.' In 2026, Section 122 (10% flat) is the only duty applying to Malaysian electronics. After July 24, if S122 expires, Malaysian electronics effectively re-enter at 0%.

Is Malaysia subject to Section 301 tariffs?

No. Section 301 applies exclusively to Chinese-origin goods. Malaysian goods have no Section 301 exposure, making Malaysia one of the most competitive China-alternative origins for electronics and semiconductors — the ITA 0% MFN + no Section 301 combination means Malaysian chips face ~10% total duty in 2026 vs ~35% from China (ITA + S301 15% on some ICs).

Is Malaysia exempt from Section 232 steel and aluminum tariffs?

No. Malaysia does not have a Section 232 exemption. Malaysian steel faces the standard 25% Section 232 tariff. However, steel is not a major Malaysia-US export flow — Malaysia's core exports are electronics, palm oil, rubber, LNG, and furniture, none of which are covered by 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 (HDDs), through factories operated by Western Digital, Seagate, and Toshiba. US importers of storage devices are already heavily dependent on Malaysian production. HDDs enter at 0% MFN (ITA-covered) plus Section 122 in 2026. The concentration risk is supply chain resilience — if Malaysian operations are disrupted (floods, power, labor), the global HDD market tightens rapidly, as happened in 2011.

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