Malaysia palm oil board does not expect big impact from Trump policies
KUALA LUMPUR, Nov 15 (Reuters) -The Malaysian Palm Oil Board (MPOB) does not expect a significant impact from expected changes to U.S. trade policies during Donald Trump's second term as U.S. President, state media agency Bernama reported the regulator's top official as saying.
While it was too early to assess the impact of Trump's policies, the sector often dealt with tariff changes such as a recent 20% import duty hike by top buyer India, MPOB director-general Ahmad Parveez Ghulam Kadir said at an event on Thursday, Bernama reported.
"If tariffs increase, the negative impact will be more pronounced in the importing country, as there are few alternatives to palm oil, other than domestically produced oils like soybeans," he said.
"Palm oil entering markets like the U.S. is primarily for industrial use, where it cannot be replaced by soybean oil. If tariffs increase, palm oil exports to the U.S. will decline, leading to higher costs for their consumers," he said.
According to the separate Malaysian Palm Oil Council, palm oil exports to the United States were 117,523 metric tons in 2023, ranking it 30th among Malaysia's export markets.
MPOB data shows Malaysia exported a total of 15.13 million metric tons of palm oil in 2023.
Reporting by Ashley Tang; Editing by John Mair
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