Posted on 13 Feb 2025
US tariffs on steel and aluminium imports are expected to lead a surge of products into Malaysia, a local trade group warned on Wednesday and urged the government to step up its anti-dumping efforts.
The direct consequences of US’ 25% tariffs remain uncertain but are expected to accelerate trade diversion, the Malaysian Iron and Steel Industry Federation (MISIF) said in a statement. The group represents more than 150 companies in the industry.
“Without immediate and decisive action, Malaysian steel manufacturers will suffer lasting and irreversible damage,” MISIF said. “We strongly urge the government to take swift action — reinforce anti-dumping legislation, expedite investigations, and implement measures to protect the industry.”
On Monday, US President Donald Trump announced a substantial tariff increase on steel and aluminium imports to a flat 25% “without exceptions or exemptions” from 10% previously. The move eliminates exceptions for certain countries and quota deals, as well as product-specific exclusions.
The tariffs will apply to bulk of the imports from Canada, Brazil, Mexico, South Korea, and other countries that had exported to the US duty free under the carve-outs. While the volume of imports from China is relatively smaller, the US held China responsible for much of the world’s excess steel.
Countries like China that previously circumvented tariffs, along with Korea, Japan and Vietnam that obtained exceptions with yearly quotas, will likely be diverting their exports to Malaysia, MISIF said, noting that Vietnam and Japan in particular have free access to Malaysia via free trade agreements.
China has been using Canada, Mexico, Brazil and Vietnam to circumvent US tariffs, which prompted North and South American countries to impose their own tariffs over the past six months to stop the flood of Chinese steel products into their countries, “but the damage has been done,” MISIF said.
Last week, the Ministry of Investment, Trade, and Industry (Miti) said it had launched a probe into alleged dumping of flat-rolled steel products from China, South Korea, and Vietnam, following an expansion in anti-dumping duties on certain steel wires from China.
In January, Vietnam imposed anti-dumping duties on certain steel wires originating from China, Malaysia and Thailand. In October 2024, Indonesia slapped duties on some iron products from China, South Korea, and Taiwan.
“Without fair trade practices, Malaysian steel producers’ risk being displaced by unfairly priced imports, leading to plant closures, job losses, and a weakened industrial base,” MISIF added.
Source:The Edge
