GEORGE TOWN, July 8 -- The imposition of a 25 per cent tariff by the United States will impact Penang's highly export-oriented economy, said Chief Minister Chow Kon Yeow.

He said the state's export-oriented economy and deep integration into global value chains made this inescapable.

"While semiconductors are currently exempted from the tariff, the broader 25 per cent imposition still poses an economic risk," he said in response to the recent announcement by the US.

He said variations in tariff rates across the Asean region could distort trade dynamics and influence future investment decisions throughout the region.

Chow also noted that Penang is a key contributor to Malaysia's exports to the US.

"Between January and May 2025, Penang ...