Image from Reuters/Dado Ruvic
Earlier this week, US President Donald Trump announced new tariffs on imports from several countries including Malaysia (24%). This move would increase the prices of Malaysian goods in the US, which may result in less Americans buying them. While Malaysia has yet to respond, China has retaliated with a new tariff rate.
In a statement by China's Ministry of Finance, a 34% tariff will be imposed on all imported US goods in China. The tariff will be effective starting from 10 April 2025. However, goods that have already departed for shipping before 10 April or have arrived in China between 10 April and 13 May 2025 will not be subjected to the new tariff.
Another related statement confirms that the tariff is imposed on "all imported goods originating from the United States on the basis of the current applicable tariff rate". It's said that China will also restrict exports of rare earth minerals to the US, which would impact the production of various sectors (like the semiconductor sector). This could indirectly increase the cost of products made by American companies.
For Malaysians, the back and forth between the two countries could impact the prices of electronics. Economists will probably know more about the topic, but what do you think of the situation? Let us know in the comments section below and stay tuned to TechNave for more news like this.
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