1 week Ago By Ahmad Mukhsein Mukhtar
ALOR STAR: The Farmers' Organisation Authority (LPP) has assured that palm oil exports to the United States will be closely monitored following Washington's temporary suspension of new tariff measures on several countries, including Malaysia.Its chairman Datuk Mahfuz Omar described the 90-day pause by US President Donald Trump's administration as a positive move that allows affected countries the space to reassess and reopen negotiations with US authorities.Mahfuz said that while Malaysia's agricultural exports to the US were relatively limited, palm oil could still come under future scrutiny, potentially impacting farmers and smallholders under LPP's umbrella.
"In Malaysia, we do not supply many agricultural products to the US, apart from possibly palm oil. Even then, any action taken could still affect our farmers."These considerations will be handled by the government and the Investment, Trade and Industry Ministry (Miti), which is leading the discussions," he told reporters when met at his Hari Raya Aidilfitri open house here today.
Mahfuz said the government had already initiated efforts on multiple fronts, including working with other Asean nations to form a united front in dealing with the US."Almost all Asean countries are affected by the US tariff plan, although at varying rates. Joint engagements have already begun to find common ground," he said.
He said that preliminary talks were also expected between MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and the US ambassador."I believe the US made this decision with the awareness that they themselves would eventually be affected. Tariffs would not only impact exporting nations but also disrupt American industries reliant on imported components," he said.
He said it was unrealistic to expect industries in Malaysia to suddenly shut down and relocate to the US, adding that the US continues to rely heavily on semiconductors and other industrial inputs produced abroad."This could lead to problems within their own industries and place additional burdens on their people. That is why, instead of appearing as if they are backing down, the US has opted for a 90-day delay to pave the way for negotiations," he said.
Mahfuz said while the LPP itself relies on guidance from the Agriculture and Food Security Ministry, the bigger concern in terms of potential impact lies with technology-based sectors, particularly electrical and electronic goods."I hope that the suspension will eventually lead to a reduction in the tariffs set by the US," he said.Earlier today, Trump abruptly paused tariffs on most countries after admitting that they had created market uncertainty.
Earlier this week, the US had imposed a 24 per cent tariff on imports from Malaysia, one of several countries targeted by reciprocal levies from Trump's administration.© New Straits Times Press (M) Bhd.
