The lower rate is in line with the universal rate imposed on all countries under US President Donald Trump’s latest tariff regime, implemented using Section 122 legislation. Thus far, Trump has imposed Section 232 tariffs on sectors such as steel, aluminium, automobiles, copper, timber, and advanced semiconductors. Sector-wise, Khaw maintained that the local semiconductor and electronics industry remains the most vulnerable due to Section 232 tariffs. “We already saw and priced in the worst-case scenarios when the tariff rate imposed on the country was at 19%. Hence, it is unlikely that the situation – even as more developments unfold in the coming days – will worsen beyond that, particularly as the global tariff rate is now 15%.

Source: The Star February 24, 2026 07:24 UTC