The Electrical Industry Workers’ Union (EIWU) said the US was a major export destination for Malaysia’s E&E sector, with exports reaching RM161.3 billion in 2023.

EIWU said the looming tariff will inevitably lead to decreased demand in the US and the cancellation of existing orders, which in turn could prompt Malaysian E&E firms to downsize.

The union said manufacturers have already expressed strong opposition to the tariff, which would exacerbate existing economic challenges like market saturation and rising operational costs.

It added that two EIWU-represented E&E firms were already expected to cease operations by the end of this year, impacting over 2,000 workers.

“We urge the investment, trade and industry ministry (Miti) to initiate immediate diplomatic engagement with the US to pursue tariff exemptions or relief mechanisms.

“We also call on Miti to adopt a firm position against this policy in relevant international trade forums, and to strengthen safeguards for Malaysia’s strategic industries,” it said in a statement.

It also called on industry players to communicate transparently with the union on their business conditions and to ensure fair treatment of workers.

Earlier today, Miti minister Tengku Zafrul Aziz said the actual average tariff imposed on US imports was closer to 5.6%, not 47% as claimed by US president Donald Trump.

Prime Minister Anwar Ibrahim has also spoken out against the “reciprocal” tariff, saying it was flawed and challenged the fundamental principle underpinning global trade rules.

He also said he was engaged in high-level talks with the US over the tariff and had personally contacted several people close to Trump.

Foreign minister Mohamad Hasan has also received a call from US secretary of state Marco Rubio to continue negotiations, Anwar said.