Rafidah Putrajaya Must Swiftly Assess Impact Of Trump S Tariffs


 



Putrajaya must promptly conduct a comprehensive evaluation and assessment of the impact of US tariffs on China, Canada, and Mexico on both Malaysian companies and foreign companies operating in Malaysia, said Rafidah Aziz.
The former international trade and industry minister said the new tariffs would have direct and indirect impacts on third countries.
“Those affected, whether directly or vicariously, will be other countries along the related supply chains, especially the suppliers or importers of various intermediate products, for the fabricators, assemblers and final products manufacturers, in particular small and medium enterprises in those countries,” she said.
According to Rafidah, the government must determine if the tariffs would directly or indirectly impact the companies, whether there are negative headwinds to be managed or potential economic gains to be prepared for.
“Such ‘trade war mentality’ amongst the economic majors can have a destabilising impact upon other countries, due to the economic, and in particular trade and investment linkages within the global economic Infrastructure.
“Clearly, the economic majors have thrown to the wind and reneged upon their decades-long drumbeat of ‘free trade’ which they sloganised when dealing with developing countries at the various trade negotiations fora in the past.
Donald Trump“Malaysia needs to adequately and effectively respond to and manage quickly any fallout from the tariff war that is already starting,” she said.
Meanwhile, former lawmaker Charles Santiago said the tariffs could backfire on US semiconductor firms operating in Malaysia.
He said that US semiconductor companies have a huge presence in Malaysia with over 200 based in Penang.
“Trump’s tariffs will end up hurting both American companies and Malaysia as these tariffs would have a knock-on impact on other products which could result in increased inflation and ultimately job losses,” he told Free Malaysia Today.
Tariff war
Yesterday, US President Donald Trump ordered 25 percent tariffs on Canadian and Mexican imports, and 10 percent on goods from China, risking a trade war that economists say could slow global growth and reignite inflation.
Following this, Canadian Prime Minister Justin Trudeau said 25 percent levies would be imposed on a raft of US imports.
Mexican President Claudia Sheinbaum also ordered retaliatory tariffs in response to the US decision.
China’s government also denounced the Trump administration’s imposition of the long-threatened 10 percent tariff on Chinese imports. - Mkini


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