KUCHING: The increase in tariffs imposed by the United States of America (USA) on various imported goods is expected to have both direct and indirect impacts on the country and the global economy in general.
Senior lecturer at Universiti Keusahawanan Koperasi Malaysia, Professor Dr Abu Sofian Yaacob, said that goods exported directly to the USA market will be subject to the announced tariffs.
“I believe the tariff increases imposed by the United States are aimed at protecting American industries and creating job opportunities for their citizens.
“This tariff hike will make imported goods in the USA more expensive, leading consumers to shift towards locally made products.
“This situation may allow Malaysia to sell component goods at a lower price to them,” he told Sarawak Tribune.
When asked about the International Monetary Fund’s (IMF) warning that Asian markets will continue to decline and negatively affect the global economy due to the tariff increases, Abu said that a study must be conducted to produce innovative products for both domestic and international markets.
“In addition, we should increase the use and purchase of local products to support local industries.
“This way, we can defend the nation’s economy,” he said.
The USA recently announced the implementation of a 24 per cent tariff on goods from Malaysia, effective from April 9.
This has been reportedly to be the most aggressive trade levies imposed by the USA.
However, several products, such as semiconductors, have been granted exemptions.
