Trump’s tariffs may increase car prices in Malaysia via impacting parts both imported and exported – MAA

Trump’s tariffs may increase car prices in Malaysia via impacting parts both imported and exported – MAA

US president Donald Trump’s tariffs may lead to car prices in Malaysia going up, indirectly through impacting automotive parts both imported and exported, the Malaysian Automotive Association (MAA) has said.

“As far as [CBU] exports are concerned, 2024 is only about US$142k (RM603k), so it’s very small. Our concerns in terms of tariffs are more on the motor vehicle parts, accessories, where it’s [worth] almost US$100 million (RM425 million) – this is about 80% of our total vehicle, other than railway, exports to the US,” president Mohd Shamsor Mohd Zain said.

“So the concerns are more on the imported CKD parts which could have been hit with US tariffs coming from multiple countries, so this impact may reverse back to us as the parts may have a slight cost impact. We haven’t felt the impact yet, it’ll only be felt maybe after six months,” he added.

Trump’s tariffs may increase car prices in Malaysia via impacting parts both imported and exported – MAA

This essentially means it’s a two-fold effect. CKD parts that Malaysia imports from heavily-tariffed countries may cost more, and Malaysian parts suppliers (apart from semiconductors, which are tariff-exempted) may get fewer orders, which would increase costs that may then be transferred to parts supplied locally too.

Trump recently reimposed 25% tariffs on Malaysian-made goods to the US. While Malaysia generally does not export cars to the US, it is a global player in the supply of automotive components, particularly semiconductors. Thankfully, semiconductors are tariff-free, at least for now.

So if car prices in Malaysia do go up next year, some of the blame may fall on Trump’s tariffs, other than the larger OMV/402 excise duty revision that we will face very soon.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Langsung Tak Logic on Jul 16, 2025 at 3:46 pm

    Alasan untuk Naik Harga cepat Kaya

    Malaysia export kena 25% Tariff
    Semua barang kena naik harga ker Tak?

    Monkey President

    Like or Dislike: Thumb up 12 Thumb down 0
  • bersyukur? on Jul 16, 2025 at 4:07 pm

    aiya.. want raise price then direct raise la.. dont say this say that many excuse for “maybe” raise price due to blablabla…

    Like or Dislike: Thumb up 16 Thumb down 1
  • Kenny Gan on Jul 16, 2025 at 4:41 pm

    How do CKD parts imported into Malaysia from other countries (not the US) be affected by US tariffs? This is between Malaysia and the exporting country, nothing to do with US tariffs. Seems like car manufacturers are groping for any excuse to increase price.

    Like or Dislike: Thumb up 29 Thumb down 0
  • Kea Was on Jul 16, 2025 at 4:47 pm

    Well no thanks to the investment guy who claims negotiation went so well when he is an ex-banker talking to an ex-businessman when the need to protect our own industry at all cost especially to protect AP cronies as mention they can import EV cars here in Malaysia safe when the NetaV got 0-Star NCAP safety how wonderful.

    Like or Dislike: Thumb up 17 Thumb down 2
  • Easy life for me,hard life for peasant on Jul 16, 2025 at 4:54 pm

    Lol everything go up, like got no gravity

    Like or Dislike: Thumb up 10 Thumb down 0
  • Tin Kosong on Jul 16, 2025 at 5:33 pm

    stop buying USA product… let the USA feel the pinched.

    Like or Dislike: Thumb up 15 Thumb down 8
  • Sabri on Jul 17, 2025 at 6:08 am

    Apa pun blame negara lain. Sendiri naik harga cakap salah orang lain.

    Like or Dislike: Thumb up 6 Thumb down 1
  • TAMAK BETUL GOVT on Jul 17, 2025 at 2:05 pm

    siapa suruh naikkan harga kereta sampai 100% sometime 200% from original price,

    terang2 malaysia need car that are quality and save for everyone just because they are B40 doesn’t mean they should buy Axia Kompang,

    just because someone that are M40 doesn’t mean they should buy Myvi or Persona it just doesn’t make any sense,

    crazy to thing that people in malaysia will never have the opportunity to buy a quality and save car in their lifetime just because of so much tax for one car.

    Corolla Altis and Civic are considered as luxury car thats nonsense lah they are literally Base car that every M40 Should effort in a first place.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Supaya kita terdesak beli kereta tahun ni.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ahmad Sofian on Jul 17, 2025 at 4:21 pm

    To reduce car prices in Malaysia, just abolish AP. And I am a Bumiputera…this AP policy only benefits Bumi elites

    Like or Dislike: Thumb up 5 Thumb down 0
    • Sabri on Jul 18, 2025 at 10:15 am

      also type c and type I elites. go kepong see how many reconmen there earning bucketloads from the reCONcars

      Like or Dislike: Thumb up 0 Thumb down 0
 

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