Penang, a major export hub, faces biggest risks in Trump’s tariff war

Penang, a major Malaysian export hub, faces significant economic risks from the U.S.’s reciprocal tariffs, with 17% (RM76 billion) of its exports destined for the U.S., its second-largest trade partner, yielding a RM57.7 billion trade surplus last year. Chief Minister Chow Kon Yeow, speaking at a special Dewan Rakyat session on May 5, 2025, highlighted the potential severe impact of these tariffs on Penang and other Malaysian states. The U.S. tariffs, announced by President Trump on April 2, 2025, include a 10% baseline duty on all countries and a 24% levy on Malaysian goods, though implementation was paused for 90 days (except for China). To counter the impact, Penang established a tariff monitoring task force and an adaptation toolkit for exporters and SMEs.

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