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Malaysian semiconductors, pharmaceuticals remain exempt from US tariffs, minister says

By Dalila Abu Bakar ( August 1, 2025, 13:18 GMT | Insight) -- Malaysia has emerged from tariff negotiations with the US on relatively strong footing: Its 19 percent rate is roughly in line with most other Southeast Asian countries, the government says it held firm on all of its “red lines” and its key exports — semiconductors and pharmaceuticals — remain exempt from new tariffs. The government says it preserved key domestic policies, despite rejecting US requests for broader market access. In return, Malaysia agreed to streamline import procedures, enhance export controls and make major Boeing aircraft purchases to help narrow its trade deficit.Malaysia has emerged from tariff negotiations with the US on relatively strong footing: Its 19 percent rate is roughly in line with most other Southeast Asian countries, the government says it held firm on all of its “red lines” and its key exports — semiconductors and pharmaceuticals — remain exempt from new tariffs....

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