PALMOILMAGAZINE, KUALA LUMPUR — The Farmers’ Organization Authority (Lembaga Pertubuhan Peladang/LPP) has confirmed that palm oil exports to the United States will be closely monitored, following the U.S. administration’s decision under President Donald Trump to temporarily suspend the imposition of new tariffs for 90 days on several countries, including Malaysia.
LPP Chairman Datuk Mahfuz Omar welcomed the move, calling it an opportunity for affected countries to reassess their positions and reopen negotiations with the U.S. government.
“Although Malaysia’s agricultural exports to the U.S. are relatively small, palm oil remains a potential target for future scrutiny. This could significantly impact farmers and smallholders under LPP’s support,” Mahfuz told Palmoilmagazine.com, citing the New Straits Times on Friday (April 18, 2025).
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He added that the Malaysian government, along with the Ministry of Investment, Trade, and Industry (MITI), has already begun diplomatic efforts and regional cooperation to address the issue.
“Almost every ASEAN country has been affected by the U.S. tariff plans, although the degree varies. Therefore, regional engagement has started to seek a common ground,” Mahfuz explained.
He also mentioned that preliminary discussions are being arranged between MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and the U.S. Ambassador to Malaysia.
“I believe the U.S. decided to suspend the tariffs because they realized it would backfire on their own industries. Tariffs don’t just hurt exporting countries — they also disrupt industries in the U.S. that depend on imported components,” he said.
Mahfuz emphasized that it is unrealistic to expect Malaysian industries to relocate to the U.S. solely due to tariff pressure.
“The U.S. remains highly dependent on industrial inputs like semiconductors manufactured abroad. If these policies continue, they could trigger problems within their own supply chains and ultimately burden American consumers,” he noted.
Regarding LPP’s role, Mahfuz stated that the organization would continue to follow the guidance of the Ministry of Agriculture and Food Security, while closely observing that the sectors most likely to be affected by the tariff issues are technology-based industries, such as the electrical and electronics sectors.
“I hope this suspension will eventually pave the way for permanent tariff reductions by the U.S.,” Mahfuz concluded. (P2)
