THE Minister of International Trade and Industry (MITI) Tengku Zafrul Tengku Aziz needs to clarify what happened over negotiations which resulted in the US decision to impose a 25% tariff on imports - which is one percent higher than the initial rate prescribed.
Former Klang MP Charles Santiago, who is also an economist, said the minister needs to explain how Malaysia is coping with the onslaught of trade wars imposed by the US on the country and the region.
"We should not accord blame as the culprit here remains the US, but we need to know how we are progressing and how we are managing the negotiations as exporters can then plan effectively in this climate of uncertainty," said Santiago.
If any blame is to be passed, it is on the part of the US, who has discarded the decades-old foreign policy of multilateralism and common prosperity.
The prosper thy neighbour concept under the age of globalisation, is now under threat to the concept of self - centralism, said Santiago.
"What took years to build; to gain trust of a trading partner and to liberalise the supply chain is now going under within months."
Earlier, the impression from MITI was the negotiations and discussions were progressing well and some quarters had predicted a sensible tariff rate for both sides.
But yesterday, US President Donald Trump instead announced a furry of new import tariffs on several nations, including Malaysia, which is now taxed 25% on import tariffs compared to the original levy of 24%.
Malaysia now shares the same tariff quantum with the likes of Japan.
Santiago also envisioned that US in the midst to check China's rise in trade wars, may impose a ban on the global supply chain on the latter's components and goods.
"It may reach a point that exporters would be dissuaded from using China produced components and goods in the global supply chain," Santiago opined.
He said that the age of multilateralism now seems to be a thing of the past.
Economist Prof Dr Yeah Kim Leng said that the 25% import tariffs would take time to be absorbed by both the import and export global markets, but this uncertainty would be negative on the trade scene, sending shockwaves to the global supply chain.
A shock to the global supply chain would be imminent but what each country does in the middle to long - terms, is what would count, said Yeah.
He said that diversification of the export market must start now, while negotiations continue with the US.
Penang - based financial expert Dr Lim Mah Hui hopes that Penang would discard its previous mentality of grandeur projects and opt for sustainable and cost - effective development if the tariffs begin to bite into its export - driven economy.
Lim is adamant that the RM10.5 billion Mutiara Light Rail Transit (LRT) line, is not financially viable, and a threat to the hopes of a sustainable culture. - July 9, 2025.
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