Malaysia warned on Monday of a “mid-to-long-term impact” from the US tariff increase as the country risked facing a slowdown in its exports to the world’s biggest economy and inbound investment.
Amid the global trade and market turmoil over Washington’s tariffs, Chinese President Xi Jinping’s coming visit to Malaysia as part of his regional tour has assumed greater significance over China’s perceived role as an economic stabiliser, according to analysts.
Tariffs of between 24 per cent and 49 per cent are set to be imposed by the US on more than half of the Association of Southeast Asian Nations’ (Asean) 10 members from Wednesday, following President Donald Trump’s announcement last week of sweeping levies that have upended global supply chains and triggered fears of a recession.
A 10 per cent universal rate for the rest of the world came into effect on Saturday.
Semiconductors – a key Malaysian export category – are exempted under the latest tariff regime. But the Malaysian government has warned that they only account for 30 per cent of the country’s total electrical and electronics exports to the US.
“Semiconductors are Malaysia’s largest export category to the US. But many other sectors will be hit, such as machinery and equipment, furniture, rubber and plastics,” Trade Minister Tengku Zafrul Abdul Aziz told a news conference broadcast on national television.
