The US expects to release findings within three to four weeks regarding an excess-capacity investigation into Malaysia under Section 301 of the Trade Act of 1974.

Malaysian Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said that authorities are engaging US officials concerning definitions of structural overcapacity.

Economists warn that a negative determination could cause the current 10% baseline tariff to increase or prompt stricter import mandates. An expert advised Malaysia to provide transparent data proving genuine domestic value addition and proper supply chain traceability to prevent transshipment penalties.