UNITED STATES President Donald J. Trump may dampen the country's economic outlook next year if he imposes punitive tariffs on the world's second-biggest economy - China, said former Finance Minister Lim Guan Eng.
The planned tariffs under Trump’s proposed US economic outlook can impact Malaysia’s economy if the protectionism policies take root, said Lim, who is also the Air Putih assemblyman.
The DAP chairman said Trump had strongly indicated his administration’s intent to impose new tariffs on imported goods.
It comes on the robust performance in Malaysia's export-driven economy this year.
“The planned tariffs, ranging between 35% and 60%, will particularly target imports from China.
“As China has been our largest trading partner for the past 15 years, Malaysia will feel the impact if China’s economy is impacted.
“The Federal Government must closely monitor the situation and be prepared to recalibrate certain tax measures and targeted subsidy mechanisms for RON95 fuel if necessary,” he said.
Lim said the people’s living cost must be taken into consideration should any impact arise.
Lim, who is also the Began MP, said he was informed in Parliament that China has been Malaysia’s largest trading partner since 2009.
Last year, the trade volume between the two countries reached RM450.84 billion.
This year, from January to September, the trade volume rose to RM355.16 billion from RM325.83 billion during the same period last year.
Such figures underscore China’s vital role as the country’s largest foreign investor and trading partner.
China's growth is significant to Malaysia’s economy, said Lim. - December 27, 2024.
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