Page 7 - FDMAsia MayJun 2025
P. 7
MARKET Beats 5
www.fdmasia.com | FDM ASIA MAY/JUN 2025
Furniture Manufacturers Muar, located in Johor state, is pivotal to Malaysia's furniture
Face Trade Uncertainty Due exports, with the United States accounting for approximately
60 percent of total exports.
To Tariff Issues One corporate kitchen furniture company’s factory, which
exports 100 percent of its products to the US, has ramped
As US tariffs loom, exporters in Malaysia, Guyana, and India up operations significantly.
scramble to adapt and fulfil orders, as reported by evrimagaci.org. Chief Financial Officer Peihing Tsai reported that the factory
Furniture manufacturers in southern Malaysia are racing has shipped out over 30 containers in just four days—equal
against time as they scramble to fulfil orders for American to its typical monthly output.
customers, driven by the looming threat of tariffs under US "We are working overtime now and trying our best to
President Donald Trump’s trade policies. motivate our workers, because these three months will be
Following Trump’s announcement of a proposed 24 percent very busy," Tsai said.
tariff on all imports from Malaysia, he subsequently revealed Trump’s proposed tariffs threaten to increase prices on
that most countries, including Malaysia, would receive a a wide array of imported goods, including clothing, mobile
temporary 10 percent rate for a 90-day period. phones, and furniture, potentially ending a long-standing era
This unexpected reprieve has led factories in Muar, a key of affordable consumer products in the US.
hub for Malaysia's furniture industry, to maximise shipments Tsai expressed concern that if tariff rates exceed 10 percent,
before the higher duties take effect. US distributors might abandon Malaysian manufacturers
Office Furniture Trade Centre

