Malaysia’s plastics industry calls for removal of tariff on US PE

The Malaysian Plastics Manufacturers Association (MPMA) has called on the Ministry of Investment, Trade and Industry (MITI) to urgently negotiate a tariff concession with the United States following the 24% reciprocal tariff announced by President Donald Trump on April 2. MPMA warned that the new trade measure threatens the competitiveness of Malaysia’s plastics industry, which is heavily export-oriented and reliant on cost-effective inputs.

In a formal appeal to MITI Minister Tengku Zafrul Abdul Aziz, the association proposed scrapping the current 10% import tariff on US polyethylene (PE) to help local converters counter the growing influx of cheap plastic goods from China. With Chinese manufacturers now facing a combined 54% tariff on exports to the US, MPMA expressed concern that excess supply could be redirected to ASEAN markets, increasing the risk of market dumping in Malaysia.

The US is Malaysia’s second-largest export market for plastic products after Asia, accounting for RM2.03 billion ($453 million) or 12% of total exports in 2024. Given the sector’s strong performance—US-bound exports grew 18% last year—MPMA stressed the urgency of engaging US trade officials while there is still room for negotiation. The association warned that neighboring countries are likely to seek similar concessions, and delaying action could cost Malaysia its competitive edge.