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Malaysian Agriculture and Commodities Minister Datuk Seri Johari Abdul Ghani has said the 19% US tariff imposed on Malaysian exports, including palm oil, is "competitive rather than burdensome" compared with other countries in the Association of Southeast Asian Nations (ASEAN).
Johari added that Malaysia still holds a strong competitive position, as the 19% rate is among the lowest in the region.
Speaking at a press conference following the opening of the UMNO division delegates conference in Pasir Gudang today, he said:
"The 19% tariff imposed by the United States on Malaysia is among the lowest in ASEAN. Even Indonesia, the world's largest palm oil producer, is subject to the same rate. If we look at the palm oil sector, Indonesia ranks first globally and we rank second, yet it also faces a 19% tariff just like us, which means the competition between us is fair."
Also attending the conference was Defence Minister Datuk Seri Mohamed Khaled Nordin, who is UMNO's deputy president and head of the party's Pasir Gudang division.
The 19% tariff on Malaysia was imposed under an executive order signed by US President Donald Trump. The document amending the reciprocal tariffs was uploaded to the White House website on 31 July 2025.
Trump had previously imposed a 25% tariff on Malaysia, but a phone call between him and Prime Minister Datuk Seri Anwar Ibrahim yesterday is believed to have been a factor in the decision to lower the rate.
Johari, who also serves as Minister of Natural Resources and Environmental Sustainability, added that there had been no major problems with Malaysian commodity exports as a result of the tariff rate.
He said:
"Malaysia's commodity exports remain able to compete fairly in the international market. I do not see any problem so far with the 19% US tariff imposed on our commodity exports."