In today’s uncertain global economy, one issue is causing big concerns for Malaysian Small & Medium Enterprises (SMEs): US tariffs. With so many news reports talking about new rules and trade conflicts, many business owners are wondering – how will this affect me, and what should I do?
In this blog, we’ve broken down what’s happening and the steps you can take to prepare.
Understanding the Tariff Situation
As of 2025, the United States has introduced several types of tariffs that affect goods exported from Malaysia. These include:
- A 10% general tariff (with a 24% specific tariff for Malaysia currently on hold)
- Extra charges on some products believed to be priced too low or receiving unfair government support
- Special tariffs on steel and aluminium.
Although some tariffs are mainly targeted at China, Malaysian businesses still feel the impact, especially in terms of supply chain and product origin checks.
These tariffs affect industries where many Malaysian SMEs operate, such as electronics, rubber, paper, steel, palm oil, medical tools, and furniture.
How Tariffs Are Affecting Malaysian SMEs
For SMEs, the problem is not just higher costs. Profit margins are shrinking, supply chains are being disrupted, and it’s getting harder to follow complicated rules. Many SMEs don’t have the staff or experience to handle all these changes. As business slows, there are also fears about job cuts and staff uncertainty.
Some businesses will be forced to delay or cancel export orders altogether because they can no longer offer competitive prices. Others are spending valuable time and money on figuring out compliance with foreign regulations – time that could be better spent growing their business.
The uncertainty surrounding these tariffs is also making it difficult for SMEs to plan ahead. Investments will be put on hold. Hiring decisions will be delayed. Even decisions as simple as renewing a supply agreement become more complicated when you’re unsure about the tariff landscape next month, let alone next year.
And for many businesses that already operate with thin margins and limited cash flow, any mistake or delay can mean closing their doors for good.
What Malaysian SMEs Want to Know
Many SME owners are searching for clear answers. They’re trying to find out if their products are affected by the new US tariffs, but the rules are complex and constantly changing.
They also want to know what kind of help is available. While they’ve heard of agencies like MITI and MATRADE, the steps to get support aren’t always clear. This uncertainty adds to this stress.
Following US trade rules is another concern. Without expert help, understanding what documents or certificates are needed can be overwhelming.
Some SMEs are even considering moving away from the US market. But exploring new markets takes time, money, and confidence – which many feel they are quickly losing.
SME owners are trying to adapt, but they need guidance that is easy to follow and relevant to their current challenges.
What SMEs Can Do Now
Here are some practical steps that SME owners can start taking immediately:
- Know your risks: Start by finding out how your business is affected. Check your product categories and see if any fall under US tariffs. This gives you a clearer picture of what’s at stake. out how your business is affected. Look into your product categories and see if any are covered by US tariffs. Understanding your exposure is the first step toward making better decisions.
- Reach out for support: Contact government agencies like MITI, MATRADE, and SME Corp Malaysia. They offer help in the form of low-interest loans, financial guarantees, and grants to explore new markets.
- Ensure compliance: Make sure you’re following the right procedures. This may include applying for product certificates or working with consultants who understand US trade rules.
- Explore new markets: Don’t rely only on the US. Markets in ASEAN, the Middle East, or Europe may provide better opportunities and less uncertainty.
- Review your business agreements: Check your current contracts to make sure they protect you from sudden cost increases. You might also want to explore sourcing materials from local or regional suppliers to reduce risks.
Why It’s Important to Act Now
These tariffs are more than just a policy shift – they’re a reminder of how quickly things can change in global trade. For many Malaysian SMEs, relying heavily on one market like the US has worked in the past, but current challenges show why flexibility is now essential.
Instead of seeing this as a threat, consider it a chance to future-proof your business. The quicker you understand where you stand, the sooner you can take advantage of new support, adapt your plans, and position your business to compete more confidently.
Early action makes a difference. Businesses that take steps now – whether it’s exploring new markets, getting advice, or strengthening supply chains – will be better equipped to handle not just this situation, but any future disruptions. It’s not about panic. It’s about preparation, and building a stronger, more resilient path forward.
What’s Next
Malaysian SMEs have proven time and again that they can weather storms – from recessions, to a raging global pandemic. While this latest challenge may be different, it also opens the door to new strategies and smarter growth. Trade policies may be changing rapidly, but so too are the tools and support systems available to help businesses adapt.
For example, if you’re unsure about your tariff exposure, now is a good time to consult with agencies like MATRADE or hire a trade advisor to walk you through your product codes. If your business relies mainly on the US market, consider exploring export opportunities in places like Singapore or the UAE, where demand for Malaysian-made goods is growing.
The key is not to freeze, but to move forward in informed, practical ways. Stay connected to trusted sources. Talk to your peers. Attend trade webinars. Reach out to agencies for help applying for soft loans or grants. Every action, no matter how small, strengthens your business for what’s ahead.
At StoreHub, we’re committed to walking this journey with you. We’ll keep providing updates, useful tools, and inspiring SME stories so you can make confident, informed decisions. Because in today’s world, survival means being proactive, adaptable, and ready for anything.
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