In Depth: Trump’s Tariffs a Mixed Bag for Malaysia’s Chip Sector

The nation’s relatively low levy might give it an advantage over its ASEAN rivals, but trade tensions could ultimately upset its geopolitical balancing act

While Malaysia’s relatively low levy might give it an edge on its rivals, concerns persist that tensions could eventually force it to choose between Beijing and Washington. Photo: AI generated

A three-month pause on higher U.S. tariffs has brought temporary relief to many countries, including Malaysia, yet uncertainty still hangs over the Southeast Asian nation’s vital semiconductor industry and broader export sector.

U.S. President Donald Trump on Wednesday announced a 90-day suspension of “reciprocal” tariffs on 75-plus countries, which had come into effect at midnight. Trump said the countries had not retaliated since he announced the extra levies on April 2, but had instead tried to negotiate with the U.S. However,