US President Donald Trump’s tariff threats have caused no small amount of trouble for the rest of the world, as governments scramble to convince Washington to reduce the levies that have already jammed up global trade and thrown financial planning into a tailspin.
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Economists broadly expect global economic growth to take a hit even if Trump decides to drop his “reciprocal” tariffs by the end of the 90-day pause – which expires in early July – given the widespread disruptions that left exporters with growing stockpiles and the trillions of dollars already wiped out from stock markets.
Malaysia is no exception.
In the immediate aftermath of Trump’s “liberation day” announcements on April 2, exporters in some key sectors like furniture reportedly faced requests from US clients to defer shipments for fear of having to pay an extra 24 per cent import tax by the time the goods arrive in America.
Barely a week later, the situation reversed, with US customers front-loading orders to get as many products as possible before the tariff pause lapses.
The rush to fulfil orders is pushing factories to work double-time, which could lead to more hiring to keep up with demand.