Kuala Lumpur (VNA) - The Federation of Malaysian Manufacturers (FMM) has called on the US to adopt a balanced approach to its proposed Section 301 tariffs related to forced labour, warning that blanket duties could penalise compliant Malaysian manufacturers and disrupt established supply chains.
In a submission to the Office of the US Trade Representative (USTR), FMM President Jacob Lee Chor Kok affirmed the federation’s full support for efforts to eliminate forced labour, while stressing that tariff measures should not unfairly penalise businesses that already comply with stringent labour standards.
He noted that many Malaysian manufacturers currently operate under rigorous compliance requirements imposed by customers, including regular audits, supplier codes of conduct and supply chain traceability obligations.
The response came after the USTR released the findings of its investigation on June 2, proposing a 10% tariff on Malaysian goods once the Section 122 tariffs under the Trade Act of 1974 expire on July 24.
FMM warned that additional tariffs could ultimately burden US commerce itself by increasing costs for US importers, manufacturers and consumers, particularly in specialised supply chains. The federation noted that these added costs will likely be passed on, either partially or fully, to US customers, affecting prices, product availability and delivery times.
Among its recommendations, FMM called on the USTR to retain the existing Annex A exclusions, particularly for electrical and electronics products, semiconductors and related product lines, which it described as critical to global supply chains.
It also urged the US not to subject Malaysian products already covered under Section 232 tariffs to additional duties under the proposed Section 301 action./.
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