Lower Tariff To Boost Malaysian Palm Oil Competitiveness In US Market – MPOB

By Nurul Hanis Izmir

PUTRAJAYA, Oct 27 (Bernama) --  Malaysia is set to benefit from the United States’ (US) decision to lower tariffs to below 19 per cent on 1,711 Malaysian export products, including palm oil and cocoa products -- a move which is expected to enhance the price competitiveness of Malaysian goods in the US market.

Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir said the US’ move to grant lower tariffs for palm oil and palm kernel oil products, as well as palm-based oleochemical derivatives such as fatty acids and fatty alcohols, marks a major step forward for Malaysia’s downstream industries.

bootstrap slideshow

“Vitamin A and E derived from palm oil also benefit from similar treatment, and this will enhance the competitiveness of Malaysian exporters, especially against other producing countries,” he told Bernama.

Ahmad Parveez said the move effectively lowers the landed cost of Malaysian products, providing a distinct commercial advantage that strengthens the country’s foothold in the US market.

“Beyond pricing, these favourable terms will also spur further expansion of value-added downstream exports, particularly in the oleochemical sectors,” he said.

bootstrap slideshow

He added that the direct price advantage complements Malaysia’s ongoing efforts to promote its national sustainability credentials, enhancing the industry’s appeal to high-value, quality-conscious buyers in the US.

Yesterday, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz announced that up to 1,711 Malaysian export products to the US will enjoy tariffs lower than 19 per cent under the Agreement on Reciprocal Trade signed between the two countries.

He said the list includes palm oil, rubber and cocoa, as well as certain pharmaceutical components and aerospace equipment.

“These exports collectively amount to about US$5.2 billion (US$1 = RM4.22), or around 12 per cent of our total exports,” he told a press conference on Sunday.

The lower tariffs are expected to take effect within 60 days after both countries exchange the necessary legal documents.

In a joint statement, Putrajaya and Washington said the US has identified products listed under Annex III to Executive Order 14346, dated Sept 5, 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a zero-per-cent reciprocal tariff rate.

The US has also committed to maintain at 19 per cent the reciprocal tariffs first outlined in Executive Order 14257, dated April 2, 2025, as amended, on originating goods of Malaysia.

-- BERNAMA