Us Tariff To Have Significant Impact Gdp Forecast To Be Revised


 
A forecast of 4.5% to 5.5% economic growth this year is currently under review following the imposition of a 24% tariff by the US on imports from Malaysia.
PETALING JAYA: The government is to revise its forecast of economic growth this year in view of the “significant impact” of the 24% tariff on imports from Malaysia announced by the US on Tuesday.
The ministry of investment, trade and industry (Miti) said the severity of the US tariff measures “exceeded even our most conservative assumptions”.
However, it said the government rejected the US claim that Malaysia had imposed a tariff of 34% on imports of US goods.
In a statement today, the ministry said the precise impact of the US tariffs, which come into effect on April 9, would be clearer once it has more information on the implementation, rates, product coverage and the outcome of trade negotiations.
“The speed and scale of retaliatory actions by other economies will also influence the final outcome,” said the ministry.
It said Malaysia firmly believes that the so-called “reciprocal tariffs” announced by the US “do not serve the principles of free and fair trade stipulated under the World Trade Organization”.
It also said Putrajaya would continue to engage with the US to find an amicable and fair solution.
Yesterday, the ministry said the government was not considering retaliatory measures after US president Donald Trump announced a base level of a 10% tariff on all exports to the US, with even higher levies on goods from some 60 nations. - FMT


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