This study investigates how Malaysian exporters are responding to the imposition of a 24% reciprocal tariff by the United States, effective April 2025. Targeting key sectors such as electronics, palm oil, furniture, and machinery, the tariff marks a significant shift in bilateral trade relations and introduces new strategic challenges for one of Southeast Asia’s most trade-dependent economies. Employing a qualitative methodology with 20 in-depth interviews across varied firm sizes and industries, this research explores the adaptive strategies pursued by exporters in the wake of this policy shock. The findings reveal three dominant responses: diversification of export markets, supply chain reconfiguration, and investment in digital trade platforms. These strategies are shaped not only by internal firm capabilities, such as logistics flexibility and market knowledge, but also by institutional pressures from government trade agencies and shifting global norms. The study integrates the Resource-Based View (RBV) and Institutional Theory to conceptualize these responses, offering a robust framework for understanding strategic adaptation under external pressure. The findings hold significant implications for policymakers, trade facilitators, and business leaders seeking to enhance resilience in a volatile global trading environment, while contributing to theoretical discourse on organizational agility in emerging markets.
Rahman et al. (Wed,) studied this question.