EIWU Warns of Job Losses with US 24% Tariff on Malaysian Imports

The Electrical Industry Workers’ Union (EIWU) in Malaysia has raised serious concerns over the US imposing a 24% tariff on Malaysian imports, effective April 9, 2025, warning of significant socio-economic fallout. The union, representing over 10,000 workers, highlighted the threat to the electrical and electronics (E&E) sector, a key export driver with RM161.3 billion in US exports in 2023. The tariff could lead to reduced demand, order cancellations, and production slowdowns, prompting companies to adopt cost-cutting measures like layoffs. Two firms plan to shut down by year-end, impacting nearly 2,000 workers. EIWU urges the government to seek tariff relief through diplomatic channels.

Job Losses

Meanwhile, Christina Tee, president of the Malaysian International Chamber of Commerce and Industry, warns that a proposed 24% tariff on Malaysian goods exported to the US could lead to the loss of up to 50,000 jobs in Penang, Johor, and the Klang Valley. Key industries such as electronics, gloves, automotive parts, palm oil, medical devices, and textiles are at risk, particularly affecting small and medium-sized enterprises. With over 65% of Malaysia’s GDP tied to trade, the tariff could make exports uncompetitive, prompting businesses to restructure or relocate production.

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