The Malaysian Automotive Association (MAA) has warned that recently reimposed tariffs by former US President Donald Trump may indirectly lead to higher car prices in Malaysia.

Trump’s 25% tariff on Malaysian-made goods exported to the US is expected to have a ripple effect, particularly on the automotive industry. Although Malaysia exports very few completely built-up (CBU) cars to the US—amounting to only RM603,000 in 2024—the real concern lies in the export of motor vehicle parts and accessories, which are worth around RM425 million.



The MAA highlighted that completely knocked-down (CKD) parts imported into Malaysia from tariff-affected countries may become more expensive. Additionally, Malaysian automotive parts suppliers could face fewer US orders, leading to higher local production costs. These increased costs could eventually be passed on to Malaysian consumers, resulting in a potential car price hike.

However, semiconductors—one of Malaysia’s key automotive exports—remain exempt from the new tariffs, providing some relief to the industry.

The association also noted that any increase in car prices in 2025 would not solely be due to US tariffs. The upcoming OMV/402 excise duty revision could further contribute to rising car prices in the local market.