KUALA LUMPUR – Former prime minister Tun Dr Mahathir Mohamad has suggested that Malaysia expand its trade markets to other countries following the United States' (US) decision to impose high import tariffs on goods from Malaysia.
He said the new tariffs announced by US President Donald Trump would cause Malaysian products to be sold at higher prices in the country, thereby affecting local manufacturing companies.
"If they don't buy our goods, our sales will drop and this will impact the companies. Company stocks will fall.
"This is temporary. If our company stocks fall due to a shrinking market, we must strive to sell our goods to other countries besides the United States,” he said.
Dr Mahathir said Malaysia’s trade should be increased with countries that do not impose high tariffs so that the national economy remains stable and continues to grow.
"They don’t impose high tariffs, so our trade with other countries should grow more,” he said at a press conference held in conjunction with the opening of the Vision 2020 time capsule at the Kuala Lumpur Tower on Sunday.
He said this in response to a question about the impact of the US’s new tariffs on Malaysia’s economy and the steps the country should take to address the issue.
On April 2, Trump announced the implementation of a base tariff of 10 percent on all countries, with higher import duties imposed on several countries, including Malaysia, at a rate of 24 percent.
However, the US granted a 90-day deferment of the tariff implementation to 75 countries, including Malaysia.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim also expressed concern over the direct impact of the US import tariffs on Malaysia’s trade and investment ties with China.
Anwar said the US move to impose high taxes and tariffs on several countries that rely on international trade, including Malaysia, would undermine regional economic stability.