Kuala lumpur: Tariffs, rare earths, and other critical minerals are anticipated to be central topics during United States (US) President Donald Trump's upcoming visit to the 47th ASEAN Summit here, according to economist Dr. Goh Lim Thye.
According to BERNAMA News Agency, Goh, a senior lecturer in economics at Universiti Malaya, stated that while there are no confirmed indications that the US will lift tariffs on Malaysian exports, such as pharmaceuticals and furniture, tariffs are expected to be a key item in bilateral discussions during the summit. "I believe Malaysia will advocate for sector-specific relief or review mechanisms, focusing on industries where value-added production benefits both economies," he told Bernama.
Goh noted that although full exemption or immediate tariff removal appears unlikely, a commitment from the US to review existing rates or to engage in structured negotiations would represent a constructive step forward. "Even a positive signal of flexibility could help restore business confidence and encourage investment in Malaysia's manufacturing base, which has been adapting to global supply chain realignments," he added.
Currently, the US imposes a general 19 percent tariff on exports from Malaysia. On September 25, 2025, Trump announced that the US would impose a 100 percent tariff on any branded or patented pharmaceutical product effective October 1, 2025, unless the company builds its pharmaceutical manufacturing plant in the US. Similarly, effective October 1, 2025, Washington will impose a 50 percent tariff on kitchen cabinets, bathroom vanities, and associated products, as well as a 30 percent tariff on upholstered furniture, measures from which Malaysia is not spared.
Regarding semiconductor exports, Goh highlighted that Malaysia currently enjoys a tariff exemption under a US national security review, reflecting Malaysia's role as a trusted node in the global electronics supply chain. "Given the strong commercial interdependence between US technology firms and Malaysian manufacturing, I believe Malaysia will seek to preserve this zero-duty status through engagement at both government and industry levels. It is in both countries' interests to maintain stable semiconductor trade flows, which underpin wider technology and digital economy cooperation," he emphasized.
On the topic of rare earths, Goh believed it would arise at the summit as part of the US effort to diversify sourcing and reduce dependency on single markets. He mentioned Malaysia's role in refining and downstream processing, supported by operations such as Australia's Lynas rare earths plant in Pahang. "Although Malaysia is not a major producer of rare earth ores, its processing capacity gives it a relevant position within the regional supply chain. The issue is expected to surface within wider US-ASEAN economic talks focused on securing critical inputs for advanced industries and strengthening alternative supply routes across Southeast Asia," he explained.
Malaysia, holding the ASEAN chairmanship this year under the theme 'Inclusivity and Sustainability', will host the 47th ASEAN Summit from October 26 to 28. The event will see the participation of top leaders from the 10 ASEAN member states, along with key dialogue partners including the US, China, South Korea, Japan, and India. Communications Minister Datuk Fahmi Fadzil confirmed that Trump is scheduled to arrive in Malaysia on October 26, marking his first trip to Asia since beginning his second presidency in January 2025, and the first visit to Malaysia by a US president since Barack Obama's visit in 2015.
Apart from Trump, prominent leaders such as Chinese Premier Li Qiang, Indian Prime Minister Narendra Modi, Brazilian President Luiz In¡cio Lula da Silva, South African President Cyril Ramaphosa, European Council President Ant³nio Costa, and Japanese Prime Minister Sanae Takaichi are among more than 20 global leaders scheduled to attend the summit.