KUALA LUMPUR, April 3 (Xinhua) -- A Malaysian research house said Thursday that Malaysia's trade risks loom as U.S. tariffs add external headwinds.

Kenanga Research said in a note that Malaysia will be affected by the tariffs, with a 24 percent duty imposed on its exports to the United States.

"Notably, key U.S. trading partners, including the European Union, and Canada, have signaled upcoming potential retaliatory measures. These developments could heighten trade tensions and disrupt global supply chains, posing downside risks to external-oriented economies like Malaysia if tensions escalate," the research house noted.

On April 2, U.S. President Donald Trump announced a series of tariffs aimed at countering what he perceives as "unfair trade practices" by other trading partners.

Kenanga highlighted that risks in Malaysia's manufacturing sector are rising amid growing uncertainty surrounding Trump's latest trade policies.

According to the research house, Malaysia's manufacturing sector contributed 23.2 percent to gross domestic product (GDP) in 2024, valued at 381.9 billion ringgit (239.38 billion U.S. dollars).

A significant portion came from export-oriented industries, notably electrical and electronics (E&E), petroleum, chemicals, rubber, and plastic products.

Despite rising external uncertainty, Kenanga maintains its 2025 GDP growth forecast for Malaysia at 4.8 percent, as it believes growth will be supported by domestic-oriented sectors, led by services, construction, and manufacturing sectors, and resilient domestic demand underpinned by higher household incomes and rising tourist arrivals. Enditem