Furniture exporters in Malaysia race against Trump’s impending tariffs
- Furniture manufacturers in southern Malaysia are racing to fulfill U.S. orders before potential tariff increases.
- The U.S. is the largest export market for Malaysian furniture, accounting for about 60% of total exports.
- Manufacturers fear that higher tariffs could lead to abandonment by U.S. distributors, impacting the industry significantly.
In southern Malaysia, particularly in Muar, the furniture manufacturing industry is experiencing a heightened sense of urgency amid the threat of new tariffs imposed by U.S. President Donald Trump. As part of an ongoing trade conflict, Trump announced intentions to impose a 24% tariff on goods imported from Malaysia but indicated a temporary reduction to 10% for 90 days as a concession to various countries. This sudden announcement sent manufacturers racing to fulfill orders from U.S. clients before the higher tariffs took effect, knowing that the U.S. constitutes around 60% of their total export market. Factories in Muar, a significant hub for Malaysia's furniture industry, are bustling with activity as manufacturers strive to maximize output during this limited timeframe. The Corporate Specialist kitchen furniture factory reported unprecedented productivity levels, managing to ship over 30 containers of goods in just four days—an amount typically shipped in an entire month. Chief Financial Officer Peihing Tsai expressed concern that if tariff rates surpass 10%, U.S. distributors may turn away from their factory, jeopardizing future business. With an all-or-nothing approach, they are working overtime and incentivizing their workforce to meet urgent demands. The impact of potential tariffs extends beyond the manufacturers to the end consumers in the U.S. Higher import taxes on essential goods such as furniture, clothing, and mobile phones could signal the end of an era characterized by affordable products. This development raises questions about the sustainability of the current pricing mechanisms and the willingness of American consumers to absorb such costs. Industry stakeholders, including Candice Lim, general manager of Natural Signature, suggest that tariffs are being used as a bargaining tactic by Trump, questioning how U.S. consumers will cope with significant price increases. As the deadline approaches, the Malaysian furniture industry remains in a precarious position. The uncertainty surrounding future tariff regulations forces manufacturers to navigate a complex export landscape, where potential hikes in tariffs could translate to diminished demand and increased consumer prices. While manufacturers brace for change, the collective hopes for negotiation and a balanced resolution to the trade disputes remain palpable.