US tariff exemptions on Malaysian palm oil to aid in growth

Posted on October 28, 2025

US tariff exemptions on Malaysian palm oil to aid in growth

One sector that has welcomed the US tariff exemptions for selected Malaysian products is palm oil, under the newly concluded Agreement on Reciprocal Trade. According to the Malaysian Palm Oil Council (MPOC), over the past two years, Malaysia’s palm oil exports to the US have shown consistent growth, supported by rising demand from advanced manufacturing and consumer goods sectors.

From January to September 2025, Malaysian palm oil and products exports increased by 8.1% to 346,000 tonnes, compared to 320,000 tonnes during the same period in 2024. The growth was primarily driven by certified palm oil, with shipments increasing from 75,000 to 98,000 tonnes.

Certified palm oil and palm stearin currently account for 79% of Malaysia’s exports to the US and are used in high-value industries, from specialty food ingredients to personal care products, where substitute options are limited. This reflects the expanding role of Malaysian palm oil in US supply chains.

Supporting this momentum, the Malaysian Sustainable Palm Oil (MSPO 2.0) certification and the Sawit Intelligent Management System (SIMS) strengthen Malaysia’s ability to meet stringent buyer requirements in major markets such as the US. Together, these initiatives enhance supply chain transparency and traceability, ensuring seamless integration into international networks while positioning Malaysian exporters for greater participation in value-added and premium market segments, adds MPON.

While the US trade outcome is highly encouraging, MPOC emphasised that Malaysia will continue broadening its market portfolio to support long-term trade resilience. Sub-Saharan Africa (SSA), the Middle East and North Africa (MENA), and ASEAN remain key focus regions, backed by growing demand for edible oils and downstream palm-based products.

With improved tariff conditions in the US, continued expansion of downstream capabilities, and an assertive market diversification agenda, MPOC is adds it is confident in sustaining palm oil export growth and reinforcing Malaysia’s role as a reliable partner in bilateral trade with the US.

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