Kuala Lumpur, Malaysia – The Malaysian furniture industry is reeling from the United States government's imposition of a significant 24% tariff, prompting an advisory for manufacturers to temporarily halt exports to the key American market.

Matthew Law, Vice President of the Malaysian Furniture Council, revealed that the unexpectedly high tariffs have led some manufacturers to postpone shipments amidst market uncertainty. "Our customers have requested us to temporarily hold shipments," he stated.

While some industry players anticipate clarity on the situation within the next two to three months, Mr. Law noted that US buyers have already put orders on hold. "The situation remains unpredictable, and while manufacturers may absorb some costs, it's uncertain how much of this will be passed on to consumers," he added.

The United States is a crucial market for Malaysian furniture, accounting for 60% of its exports. As of February 2025, Malaysia's furniture exports to the US stood at RM12.828 billion (approximately USD 2.7 billion). Other significant export destinations for Malaysian furniture include Singapore, Australia, Japan, and the United Kingdom.

Mr. Law mentioned that the Ministry of International Trade and Industry (MITI) is currently engaging with industry stakeholders to assess the impact of these tariffs. He highlighted that Malaysia's primary exports include wooden furniture, dining tables, chairs, and sofas, with ready-to-assemble furniture also holding a substantial share. However, he cautioned that relocating production bases to other countries is not a simple solution due to the considerable time required for style and design adaptation.

The United States announced the imposition of broad tariffs on imports from nearly all countries, including Malaysia, on April 2nd. Effective April 5th, all goods shipped from Malaysia to the US face a minimum tariff of 10%, with the majority of products incurring a 24% tariff from April 9th. Certain items are exempt from these tariffs.

Steve Ong Yew Huan, President of the Johor Furniture Makers and Traders Association, corroborated that numerous US buyers have urged furniture exporters to temporarily suspend shipments to the United States, citing ongoing efforts by their government to negotiate lower tariffs. "Some furniture export orders are currently on hold due to the uncertainty surrounding the new tariffs," he confirmed, while adding that some shipments to the US are proceeding as usual.

Mr. Ong expressed concern that while the 24% tariff imposed on Malaysia is lower than those levied on some other nations, buyers might eventually shift production to countries with lower tariff rates, potentially diminishing Malaysia's competitiveness. "Our only lifeline is for our government to negotiate with the US to reduce the tariff rate as much as possible," he emphasized.

Meanwhile, Deputy Minister of Plantation Industries and Commodities, Datuk Chan Foong Hin, clarified that while wood-based products are currently exempt from the tariffs, uncertainty remains as ongoing investigations could lead to new trade restrictions or tariffs. He assured that the government is closely monitoring the situation and working closely with MITI and relevant agencies to safeguard the interests of Malaysian industries and exporters.

"Minister of Economy Rafizi Ramli, in collaboration with the National Economic Action Council (NEAC), is actively assessing the impact of these tariffs and developing strategies to mitigate any adverse effects on the Malaysian economy and industries," Datuk Chan stated.

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