Storyline: Malaysia is stuck in its negotiations with the United States regarding tariffs as some U.S. demands are considered politically sensitive, leaving key local industries such as furniture making in serious trouble. As this year’s rotating chair of the Association of Southeast Asian Nations (ASEAN), Malaysia has called on the members to refrain from retaliation and angry rhetoric in countering threatened U.S. tariffs. Facing the threat of the 25-percent tariffs taking effect on August 1, Malaysia itself swiftly sought to cut a deal, but the government is reluctant to concede on certain U.S. demands. Muar in Malaysia's southern Johor state is the undisputed capital of the country's furniture-making industry. "There are about 700 or 800 furniture factories in Muar. Between 60 and 70 percent of Malaysia’s furniture exports come from here, of which over 60 percent go to the U.S.,” said Steve Ong Yeou Huan, president of the Muar Furniture Association. While furniture industry will face the full brunt of any U.S. tariffs, Malaysia's biggest exports, semi-conductors and other electronics, appear to be exempted for now. Malaysia imposes average tariffs of less than 6 percent on U.S. imports, and cutting or ending those wouldn't be too hard or too costly. Experts said it is the non-tariff barriers that are blocking progress in negotiations. "The real issue here in Malaysia are the non-tariff barriers, and these are primarily the restrictions which protect the ethnic Malay community in terms of business access, business ownership and access to government procurement. Those are the big areas where the U.S. is looking for changes, and those are exactly the areas where the Malaysians, the Malaysian government finds it difficult to make concessions," said Geoffrey Williams, an economist. Those politically sensitive demands have so far prevented a deal, despite Malaysia being one of the first countries to begin negotiations with the United States. Meanwhile, Malaysia's neighbors Indonesia and Vietnam have struck deals with the U.S. that saw their tariff rates trimmed to 19 and 20 percent. Both countries are competitors with Malaysia's furniture makers. "We've been actively producing and exporting furniture. If Malaysia's tariffs can not be lower than other countries', many of our orders will be snatched away. This industry in Muar has a history of more than 40 years. It might quickly collapse," said Ong. With Malaysia's Prime Minister Anwar Ibrahim referring to some key U.S. demands as "red lines" his government will not cross, many Malaysian companies reliant on the U.S. market are bracing for the worst. Shotlist: Muar, Malaysia - July 28, 2025: 1. Various of buildings, traffic 2. Interior of furniture factory; wood material being transferred 3. Worker processing wood 4. SOUNDBITE (Chinese) Steve Ong Yeou Huan, president, Muar Furniture Association (partially overlaid with shot 5): "There are about 700 or 800 furniture factories in Muar. Between 60 and 70 percent of Malaysia’s furniture exports come from here, of which over 60 percent go to the U.S." [SHOT OVERLAYING SOUNDBITE] 5. Wood being processed in factory [SHOT OVERLAYING SOUNDBITE] 6. Various of interior of wood factory; workers FILE: Malaysia - Date Unknown: 7. Various of people working on computer; machines in factory 8. Various of port scene; trucks. ships; containers being transferred 9. People at shopping mall 10. Square; flags Kuala Lumpur, Malaysia - July 31, 2025: 11. SOUNDBITE (English) Geoffrey Williams, economist: "The real issue here in Malaysia are the non-tariff barriers, and these are primarily the restrictions which protect the ethnic Malay community in terms of business access, business ownership and access to government procurement. Those are the big areas where the U.S. is looking for changes, and those are exactly the areas where the Malaysians, the Malaysian government finds it difficult to make concessions." Muar, Malaysia - July 28, 2025: 12. Various of interior of furniture factory; workers 13. SOUNDBITE (Chinese) Steve Ong Yeou Huan, president, Muar Furniture Association (partially overlaid with shot 14): "We've been actively producing and exporting furniture. If Malaysia's tariffs can not be lower than other countries', many of our orders will be snatched away. This industry in Muar has a history of more than 40 years. It might quickly collapse." [SHOT OVERLAYING SOUNDBITE] 14. Various of interior of factory; workers [SHOT OVERLAYING SOUNDBITE] 15. Various of buildings, traffic. [Restrictions : No access Chinese mainland]