The Malaysian Iron and Steel Industry Federation said it expects the ministry of investment, trade and industry to take “imminent, bold and decisive action” to protect the local industry, particularly in view of other nations possibly diverting their steel products to Malaysia.
The federation urged Putrajaya again to enforce a “Buy Malaysia First” policy for steel products to combat unfair imports and dumping by foreign exporters.
“We also call upon the government to strengthen enforcement to prevent smuggling, misclassification and circumvention of imported steel,” a federation spokesman told FMT.
The federation said the new US tariff is expected to add pressure on Malaysia’s steelmakers, who are already burdened by sluggish domestic demand and high energy costs.
It said the local industry had no capacity to absorb the impact of greater foreign dumping, for which government intervention was needed, failing which “the pressures could result in widespread plant closures, idle capacity, and tens of thousands of job losses across the steel value chain”.
The federation called for “imminent, bold, and decisive action” to safeguard the industry from long-term damage caused by trade diversion.
The US tariffs, raised from 25% to 50%, came into effect on Wednesday after US president Donald Trump signed the executive order. The trade ministry has said it is holding talks with the US over the tariffs, with deputy secretary-general, Mastura Ahmad Mustafa , appointed to lead negotiations.
Separately, the Federation of Malaysian Manufacturing said Malaysia’s overall exposure to the new steel tariffs was modest but shifts in global trade flows and potential retaliatory measures posed broader risks.
FMM president Soh Thian Lai said manufacturers in downstream industries reliant on steel and aluminum could face cost pressures, from automotive, construction to electrical and electronics sectors.
Soh said FMM hoped the government would not introduce new costs for manufacturers, such as expanding the sales and service tax or raising utility tariffs.
He added that FMM is working with the US embassy in Kuala Lumpur to brief FMM members on a US initiative to woo foreign manufacturers to set up shop in the US, thereby mitigating the impact of tariffs and enhancing long-term access to the US market.