April 8, 2025
PETALING JAYA – The furniture industry here has been advised to delay shipments to the United States following the imposition of a 24% tariff by the US government.
The Malaysian Furniture Council’s deputy president Matthew Law said this significant tariff has resulted in some manufacturers postponing shipments due to the prevailing market uncertainty.
“Our clients have requested us to temporarily hold off on shipments,” he said.
While some industry players anticipate clarity in the next two to three months, Law indicated that US clients have already put orders on hold.
“The situation remains unpredictable, and it’s unclear how much of this cost will be passed on to consumers, as manufacturers may absorb some of the expenses,” he said.
The United States is a crucial market for Malaysian furniture, accounting for 60% of the country’s exports. As of February 2025, Malaysia’s furniture exports to the United States were valued at RM12.828bil.
Other key markets for Malaysian furniture include Singapore, Australia, Japan and the United Kingdom.
Law noted that the International Trade and Industry Ministry (Miti) is in discussions with industry representatives to assess the impact of these tariffs.
He highlighted that Malaysia’s primary exports include solid wood furniture, dining tables, chairs and upholstered sofas, with modular furniture also playing a significant role.
However, he cautioned that relocating production to other countries is not a straightforward solution, as adapting styles and designs takes considerable time.
On April 2, the United States announced extensive tariffs impacting imports from nearly every country, including Malaysia.
Effective April 5, all Malaysian products shipped to the United States will incur at least a 10% duty; from April 9, most will face a 24% rate, with some exemptions.
Steve Ong Yeou Huan, president of the Federation of Johor Furniture Manufacturers and Traders Associations, confirmed that several American clients have requested furniture exporters to temporarily suspend shipments to the United States due to the government’s efforts to negotiate a lower tariff rate.
“Some furniture export orders are currently on hold due to the uncertainties surrounding the new tariffs,” he said, adding that some shipments to the United States continue as usual.
Ong said although the 24% tariff imposed on Malaysia is lower than that for some other countries, clients may eventually shift their production to nations with even lower tariffs, which would undermine Malaysia’s competitiveness.
“The only viable path forward is for our government to negotiate with the United States to reduce the tariff rate as much as possible.”
Meanwhile, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin stated that while lumber products currently enjoy exemptions, uncertainties remain, with potential new trade restrictions or tariffs based on the outcomes of ongoing investigations.
He added that the ministry is actively monitoring the situation, collaborating closely with Miti and other relevant agencies to safeguard the interests of Malaysian industries and exporters.
“Datuk Seri Johari Abdul Ghani, the Minister, is working with the National Geoeconomic Command Centre (NGCC) to assess the impact of these tariffs and develop strategies to mitigate any adverse effects on Malaysia’s economy and industries.”