04/04/2025

FRIDAY | APR 4, 2025

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‘US tariffs may cause price surge for everyday goods’

Trump declares baseline taxes on all countries KUALA LUMPUR: President Donald Trump has announced that the United States would introduce a baseline tariff of 10% on all nations and higher duties on some countries, including Malaysia at 24%. This could put Asian equities under pressure when financial markets open from yesterday. “While this caused an initial relief rally globally, sentiment in Asia is likely to deteriorate as the market digests the higher tariffs directed at specific countries, including China, which is facing a 34% tariff on imports and Japan’s 24% duty. “Vietnam and Cambodia face even steeper tariffs at 46% and 49% respectively,” said investor and global macro analyst ActivTrades Anderson Alves in a market commentary. He said a broad risk-off environment is expected across Asian markets, with the US dollar likely to outperform regional currencies. The technology and semiconductor sectors are anticipated to mirror declines in the US market, where the tech-heavy Nasdaq reversed earlier gains, closing 3% down. “Market operators will keep a close eye on China’s response to the announced US tariffs. Some expect China to close the tap on investment in the US in order to strengthen its negotiation position in US trade talks.” The White House noted that the United States will respond in kind to any attempt to retaliate to the duties. The trade battle would likely be the key driver for markets today and for the rest of the week, Alves added. Higher sums will be charged on nations that Trump has deemed to be the “worst” trade offenders, Anadolu Ajansi reported. Trump said:“This is one of the most important days, in my opinion, in American history. It is our declaration of economic independence.” A series of handouts that the White House circulated among reporters highlighted some reciprocal tariffs being imposed by Trump, including a 20% tariff on European Union goods, a 46% tariff on Vietnamese goods and a 44% tariff on Sri Lankan imports. About 60 nations will face tariffs above 10%, according to a White House official who briefed reporters on condition of anonymity ahead of the official rollout. Turkiye is among the nations that will face a 10% tariff, alongside the United Kingdom, Kenya, Iceland, Panama, Ethiopia, Lebanon and Togo. Canada and Mexico will not be subject to the new tariff regime after facing previous penalties imposed by Trump in a bid to pressure them to take greater action on migration and the flow of illicit fentanyl across the US border. – Bernama Airline warns of customer service fraud KUALA LUMPUR: Malaysia Airlines has advised their customers to be wary of suspicious messages or comments from fake accounts pretending to be their customer service representatives. It reported that there has been an increase in fake accounts reaching out to customers and pretending to be customer service representatives in the comments section of their official social media accounts. “Do not engage with these scammers as they may ask for your personal details, payment information or direct you to fraudulent links. “Only trust our official, verified accounts on Facebook and X @malaysiaairlines (look for the blue verification tick),” it said on X. It reminded customers that they could reach the airline through their live chat. – Bernama

ensuring regular inspections at supermarkets, sundry shops and online markets. Fomca advised Malaysians to adopt smart spending habits. Saravanan stressed the need to reduce reliance on imports, calling for greater investment in local agriculture, urban farming and streamlined farming subsidies. The Labour Solidarity and Learning Resource Association warned that the tariff, aimed at reviving US manufacturing, might instead harm both US and Malaysian workers. Over the past decade, Malaysia has benefitted from new investments and manufacturing plants, largely due to the US-China trade war and geopolitical de-risking. This growth has created job opportunities and introduced new technologies to the country. However, the association warned that the new tariff policy could lead to manufacturers leaving Malaysia, causing factory closures and job losses for thousands of workers. It questioned whether the tariffs would even create many new jobs in the United States, given the higher production costs that would likely drive up consumer prices. The association urged the US government to reconsider the tariff policy and seek a win-win solution with the affected countries. It advised the Malaysian government to rethink its reliance on foreign direct investment, recommending that the Madani government incentivise local industrialists to invest in manufacturing and other sectors, ensuring sustainable job creation within Malaysia.

o Ripple effects will be felt as businesses adjust to declining revenue and rising costs: Consumers association

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

lower-income families, who spend most of their income on food, utilities and education. “Small price increases could add hundreds of ringgit in additional monthly expenses.” Saravanan highlighted how an increase of RM30 in groceries, RM20 in utilities and RM15 in school supplies could force struggling households to cut back on nutrition, healthcare and education, worsening financial stress and household debt over time. While the tariffs do not directly apply to Malaysia’s imported essentials, he warned that indirect effects could lead to supply shortages. “If manufacturers prioritise exports or reduce local production, the domestic availability of certain goods may tighten, driving prices even higher.” Fomca urged the government to strengthen the Price Control and Anti-Profiteering Act 2011 to protect consumers. “The Domestic Trade and Cost of Living Ministry must closely monitor pricing trends, especially for essential goods,” said Saravanan. He called for the Price Catcher app to be more widely promoted so that consumers can compare prices and report unfair pricing. He also urged the government to review and adjust ceiling prices for essential items, such as cooking oil, flour, sugar and baby formula, while

PETALING JAYA: Malaysian consumers may face price increases on everyday goods as a result of the new 24% US tariff on Malaysian exports, warned Federation of Malaysian Consumers Associations (Fomca). Its CEO and secretary-general Dr Saravanan Thambirajah said while the tariff directly impacts exports, its ripple effects would be felt by local consumers as businesses adjust to declining revenue and rising costs. “Exporters struggling to compete in the US market may try to shift excess stock or production costs to the domestic market. “Logistics expenses could rise due to decreased export volumes or rerouted trade routes, further driving up prices.” The products most affected would be those tied to export-driven industries, including electronics, palm oil-based products, rubber goods and processed foods. For instance, items such as televisions, laptops, washing machines, cooking oil, soaps, medical gloves, tyres and food products relying on imported ingredients may see price hikes. “The rising cost of essential goods would place a significant burden on middle- and

ROCKY ROAD ... A boulder that fell from a cliff at 10am yesterday blocking Jalan Buli Sim Sim in Sandakan, Sabah. – BERNAMAPIC

Govt signs deal with UK company to restart MH370 search SEPANG: The government has signed an agreement with marine robotics company Ocean Infinity in United Kingdom to reinstate the search for missing Malaysia Airlines flight MH370. Transport Minister Anthony Loke said it was inked last week. the KL International Airport. Loke was responding to an announcement by the Association for Families of the Passengers and Crew that the search for MH370, which disappeared on March 8, 2014, has been delayed until next summer in the Southern Hemisphere.

find, no fee” basis. This means the government will only be required to pay Ocean Infinity if the wreckage is discovered, with a success fee amounting to US$70 million (RM311 million). Ocean Infinity participated in the search for MH370 from January 2018, covering more than 112,000 square kilometres of the southern Indian Ocean seabed before ending the mission on May 29, 2018. MH370 disappeared after departing from Kuala Lumpur en route to Beijing, China, with 239 passengers and crew members on board.

The association cited Ocean Infinity’s prior commitment as the cause behind the postponement, Bernama reported. It was earlier reported that the government had approved the terms and conditions of the service agreement with Ocean Infinity on a “no

He said the search operation is currently halted, citing weather conditions, and is expected to resume at the end of the year. He was speaking at a press conference after welcoming the arrival of the first flight of British Airways to Malaysia after a five-year hiatus at