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MALAYSIAN exporters will not be eligible for refunds on tariffs previously imposed by the United States, despite some absorbing part of the cost.
This is because only importers recognised by US authorities can file such claims, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani clarified today.
His remarks come after US Customs and Border Protection (CBP) announced it would begin accepting refund applications from April 20, following a ruling by the US Supreme Court in February that struck down sweeping global tariffs introduced under US President Donald Trump.
Johari stressed that any financial burden borne by Malaysian exporters arose from private commercial arrangements rather than government policy.
“Some importers refused to accept the goods and requested that they be returned. In some cases, they asked Malaysian companies to absorb part of the cost.
“That was a commercial decision (between importers and exporters) and had nothing to do with the government,” he said.
He explained that under US customs rules, the legal “importer of record” is the only party entitled to seek refunds, even if exporters had agreed to share the tariff burden.
“While we are affected economically, we do not pay the tariff. Instead, the importer bringing in our goods is subjected to the duty imposed by the United States. This is why, in terms of refunds, only the importer on the other side (United States) is eligible,” The Star reported him saying.
Johari added that although the invalidation of the Agreement on Reciprocal Trade provides some relief, Malaysian exporters are not entirely free from duties.
They remain subject to a 10 per cent tariff under Section 122 of the US Trade Act 1974, a temporary measure pending a revised tariff framework.
The refund process announced by CBP will initially apply only to selected unliquidated entries or those finalised within the past 80 days, meaning payouts may be limited in scope and take time to materialise.
Economists had earlier said the development could still indirectly benefit Malaysia’s export sector, particularly in high-value industries.
Centre for Market Education chief economist Alvin Desfiandi noted that the United States remains Malaysia’s second-largest export destination, accounting for about 15 per cent of total exports.
“This year, the major tech companies in the United States are expected to invest US$650 billion (RM3.1 trillion) in AI infrastructure.
“Given this ongoing AI boom, I think the most obvious sectors are E&E and machinery. Together, these sectors contribute around 70% of Malaysia’s total exports to the US,” he said.
However, Professor Geoffrey Williams cautioned that the benefits of refunds would largely accrue to US firms rather than Malaysian companies.
“It is likely that in many cases, the US companies buying Malaysian products paid the import tax. It is US firms that will claim a refund and they are the ones to benefit, not Malaysian exporters, in most cases.
So, the refund will go to US companies, not Malaysian companies,” he said.
He also warned that the refund process could be lengthy.
“The US Customs may have opened applications for refunds, but unless the claim is clear and uncomplicated, it could be months or years before repayments are made. Trump already indicated that the refund process would not be easy or quick,” he added.
Williams argued that tariffs have not necessarily harmed bilateral trade, pointing out that Malaysia’s trade surplus with the United States rose sharply.
“The tariffs did not harm US-Malaysia trade. In fact, there was a huge boost,” he said, noting that exports grew strongly despite currency pressures from a firmer ringgit.
As the United States begins processing refund claims, Malaysian exporters are expected to see indirect gains through sustained demand, even as direct financial recovery remains out of reach. - April 13, 2026
