US Cites Malaysia’s Strict Halal Rules and Equity Mandates as Trade Barriers, Imposes 24% Tariff

The United States has identified Malaysia’s halal import restrictions and bumiputera equity requirements as significant trade barriers, contributing to a 24 percent reciprocal tariff on Malaysian exports, according to the 2025 National Trade Estimate Report by the Office of the US Trade Representative (USTR). Malaysia’s stringent halal requirements, which mandate dedicated halal-only facilities for slaughterhouses, storage, and transportation, exceed international norms and increase costs for US exporters. Unlike other countries that permit shared facilities with Islamic cleaning procedures, Malaysia requires US meat and poultry plants to be inspected and certified by Malaysia’s Department of Islamic Development (Jakim) and an accredited Foreign Halal Certification Body.

Strict Halal Rules

Additionally, the registration process with the Department of Veterinary Services (DVS) is described as overly burdensome, involving extensive documentation, lengthy reviews, and plant-by-plant inspections. Updates to registrations can take weeks to months, and minor discrepancies may lead to shipment detentions. The USTR considers these regulations unnecessary, given the US’s established history of supplying safe animal products to Malaysia.

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