KUALA LUMPUR: Malaysia has been placed in the lower tariff tier under the United States' Section 301 measures related to forced labour, with a 10% duty taking effect from 12.01 am US time on July 24.

The Ministry of Investment, Trade and Industry (MITI) said Malaysia is among 17 economies subject to a 10% tariff, while the other affected economies will be imposed a 12.5% tariff.

“The United States Trade Representative (USTR) took into consideration Malaysia's commitments to implement and enforce laws prohibiting the importation of forced labour goods, as the basis for the tariff rate imposed on Malaysia,” MITI said in a statement on Friday.

The ministry said the 10% tariff will take effect immediately after the expiry of the temporary tariff imposed under Section 122 of the US Trade Act of 1974.

On the separate Section 301 investigation into excess capacity, MITI said the probe involving 16 economies, including Malaysia, remains ongoing.

"Once the USTR determines the rate on excess capacity, MITI will update all relevant stakeholders accordingly. Meanwhile, MITI will continue to engage with the United States," it said.

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