Think Tank Rubbishes Trump S Tariff Numbers


 
The Center for Market Education’s CEO, Carmelo Ferlito, said trade barriers cannot be calculated as the ratio between trade deficit and import.
PETALING JAYA: The head of a think tank has disputed the data presented by the US administration to justify its reciprocal tariff it imposed on several countries, including Malaysia.
The Center for Market Education’s CEO, Carmelo Ferlito, said while the numbers presented looked incredibly high to warrant the US government’s protective policies, a closer look at the figures revealed that they were in fact a result of the ratio between US trade deficit and US import with each country.
“It goes without saying (that) trade barriers cannot be calculated as the ratio between trade deficit and import.
“It is clear that the trade war begins in the worst possible way, with made-up data,” he said in a statement.
Ferlito said while trade deficit, import and export were influenced by trade barriers, they were not uniquely determined by them.
According to Donald Trump’s administration, the US had to deal with 47% trade barriers from Malaysia, 64% from Indonesia, 67% from China, 46% from Japan and 90% from Vietnam.
Malaysia was hit with a 24% reciprocal tariff by the US, effective April 9.
According to an executive order signed by Trump yesterday, Malaysia is one of 49 countries slapped with the reciprocal tariff.
The other countries include Cambodia (49%), Laos (48%), Vietnam (46%), Myanmar (45%), Thailand (37%), China (34%), Indonesia (32%), Brunei (24%) and the Philippines (18%).
The highest rate of 50% was imposed on Lesotho, and the lowest of 11% on the Democratic Republic of Congo.
Ferlito said the correct approach to trade barriers, tariff and non-tariff alike, was by referring to the Tholos Foundation’s International Trade Barrier Index, which he said provided a more accurate measure.
He also said countries which opposed Trump’s tariffs should actively promote and push harder for bilateral and multilateral free trade agreements, and not try to create even more hidden protection for domestic industries.
Ferlito said Malaysia should also capitalise on its privileged position as the Asean chair.
“Instead of retaliatory measures, Malaysia should leverage its Asean position to promote service trade liberalisation and push for a more aggressive trade policy with the European Union,” he said. - FMT


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