Oil Palm Industry Economic Journal Vol. 25 (2) September 2025 p. 60-68
DOI: https://doi.org/10.21894/opiej.2025.04

UNITED STATES TARIFF SHOCKWAVES: MALAYSIA’S PALM OIL IN THE CROSSHAIRS

AMIRUL AFIF MUHAMAT1*; MOHAMAD NIZAM JAAFAR2; NURUL AFZAN NAJID3; ROSLINA MOHAMAD SHAFI1; MUHAMMAD HAFIZ ABD RASHID1 and DWI NASTITI DANARSARI4
Received: 19 May 2025   Accepted: 15 August 2025   Available Online: 23 September 2025

ABSTRACT:

This article presents an analysis on the implications of the 2025 United States (U.S.) tariffs policy introduced under President Donald Trump administration on Malaysian palm oil industry (when this article was written). It examines the multifaceted impact of the early slapped of 24% tariff by the U.S. before it was escalated to 25%, then reduced to 19% on August 2025 (after went through delicate trade negotiations and bargaining) necessitates discussion on the Malaysian exports through economic, political, and strategic lenses. The analysis reflects on the broader context of global trade tensions and protectionist trends, while also evaluating Malaysia’s policy responses and adaptive strategies. Drawing on current developments and historical parallels, the article offers a forward-looking perspective on the long-term viability and resilience of Malaysia’s palm oil industry in an increasingly uncertain trade environment.

About Post Author


1 Climate Risk and Sustainable Finance RIG,
Faculty of Business and Management,
Universiti Teknologi MARA (Cawangan Selangor),
42300 Puncak Alam, Selangor, Malaysia.

2 Arshad Ayub Graduate Business School,
Universiti Teknologi MARA,
40450 Shah Alam, Selangor, Malaysia.

3 Faculty of Accountancy,
Universiti Teknologi MARA (Cawangan Pahang),
27600 Raub, Pahang, Malaysia.

4 Faculty of Economics and Business,
Universitas Indonesia, Jalan Margonda Raya,
16424 Depok West Java, Indonesia.

* Corresponding author e-mail: amirulafif@uitm.edu.my