0536 GMT - Malaysia's tariff outlook could remain uncertain as the U.S. continues its excess-capacity investigation, CIMB economists Chew Khai Yen and Michelle Chia say in a note. They expect the probe to result in additional Section 301 tariffs, potentially lifting Malaysia's headline tariff rate back toward the 15%-19% level originally proposed under the U.S. reciprocal tariff plan. The newly effective 10% Section 301 forced-labor tariff has had little impact, as broad exemptions reduced the share of Malaysian exports to the U.S. subject to the levy to 31.9% from 33.0%, lowering the trade-weighted effective tariff to 5.1% from 5.2%, they add. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 01:36 ET (05:36 GMT)

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