It looks like President Donald Trump is true to his word. Mr Trump calls April 2nd 2025 'Liberation Day' when the United States of America frees itself from being economically bullied by the rest of the world. President Trump is referring to the tariffs (or import taxes / cukai impot) levied by the rest of the world on American products imported into their countries.
Here are two tabulations of the tariffs paid on imported American goods (into these other countries) PLUS Mr Trumps new tariffs against those countries.
In the first chart the new American tariffs against other countries are ranked from highest to lowest. The highest American tariffs against these other countries start with Cambodia which has been hit with 49% tariffs. Laos, Madagascar, Vietnam, Myanmar and Sri Lanka are in the Top 6 with tariffs above 40%.
Why has Cambodia been hit with such a high tariff? Because Cambodia in turn has been imposing a 97% (NINETY SEVEN PERCENT TARIFF !!) against American goods coming into Cambodia.
So Cambodia has been imposing a 97% tariff and now Donald Trump has "reciprocated" with a 49% tariff on Cambodia.
I say Tuan-Tuan yang dihormati, do you think that is fair - lets say from an Islamic point of view of adala or adil or justice. Is it adil or fair for one country to impose 49% tariff on another country when the other country is already imposing a 97% tariff on the first country?
Shouldnt it be equal tariffs? You impose 97% tariff on my products so I will impose 97% tariffs on your products?
Note that there are 21 countries (the white colour boxes, Morocco to UK - including Singapore) where Mr Trump has imposed a minimum tariff of 10% only against those countries. WHY? Because these countries also impose the minimum tariffs against imports from the United States of America.
You can see this in this second table here:
China imposes 67% import tariffs on American products so Donald Trump has imposed a 34% tariff on Chinese products.
The European Union imposes 39% tariffs on America so now America has imposed 20% tariffs on the EU.
Malaysia imposes 47% tariffs on American imports so now the US has imposed 24% tariffs on Malaysian goods.
Singapore imposes ONLY 10% tariffs on American goods so now the US has imposed only 10% tariffs on Singapore.
So what will happen now? Investors (foreign and domestic) who depend on selling their products in the American market will either move their factories to the United States or they will open factories in those countries which pay the least tariffs to export to America.
For example Singapore, Australia, Morocco, almost the whole of South America, New Zealand are charged only 10% tariffs to sell their exports into the American market. So these countries will become attractive for any new factories that wish to export to the American market. Bye bye Cambodia (49%), bye bye Malaysia (47%).
So the question now is can Cambodia and Malaysia live without "low tariff" access to the American market? Can Cambodia and Malaysia sell their products elsewhere in the world?
Here are the stock market charts for the past one week. The Japanese Nikkei Index and our KL Index have gone down.
But over in New York the Dow Jones has been moving up the past five trading days.
Should Malaysia and Cambodia lower our tariffs? This is a stupid question. Of course we should all lower our tariffs. The whole world should go down to just one standard Magic Number 15%.
But there is a twist. If we lower our tariffs (which we should anyway) will President Trump lower American tariffs against our products? This is a dicey question.
Mr Donald Trump and his closest advisers and Cabinet members are inclining towards ZERO personal income taxes on American citizens. And maybe zero corporate taxes on American corporations. Donald Trump is slowly but surely shutting down the US Department of Education (Ministry of Education). They have shutdown US AID. They want to shut down other "Ministries" as well. They also want to shut down the IRS or the Inland Revenue Service (Lembaga Hasil Dalam Negeri).
So how will the US government manage its affairs? Well first of all the size of the US government will become very small. Just a few 'departments' like Defense, Customs, Immigration to keep the country going.
And they will be funded by tariff collection on imported goods. THIS MEANS DONALD TRUMP WILL MAINTAIN TARIFFS AGAINST OTHER COUNTRIES.
Who actually pays these tariffs? It is the American consumer. So the American "citizen" has an option - if you dont want to pay tariffs on imported goods then Buy American products. Make America Great Again (MAGA). There are no tariffs on American products Made in America.
If you want to buy imported goods, the the American consumer must pay the import tariffs.
Will there be price hikes in the US. Yes and no. Yes because if imported goods become more expensive, then it is actually a protective barrier to benefit American manufacturers. American manufacturers can increase their selling prices until just a few US Dollars below the high tariff imports. They can be lazier and still make high profits. Less effort but more money. So no need to work so hard. And they can bully the American consumer.
This is what happened to Proton (before Geely).
But also possibly NO price hikes in America. America is not Malaysia. America is a very open and extremely competitive economy. It is possible that despite Donald Trump's tariff protection the stiff competition in the American economy can generate products that are actually cheaper than China or Malaysia. This has happened before in the 1980s/90s when some American cars became cheaper to produce than imported Japanese cars.
The American economy, the largest economy in the world, is a different cup of tea altogether. Do not underestimate the American people.
In other words the US economy might benefit from all these tariff hikes - if they remain competitive.
Lets digress a little. So what happened to the UN, GATT, WTO, TPPA, NAFTA, bla bla. (United Nations, General Agreements on Tariffs and Trade, World Trade Organisation, Trans Pacific Partnership Bullshit, North American Free Trade Area Bullshit etc?) So what has happened to all that?
Dear reader, do you know what those organisations and agreements really mean? They really mean tahi ayam or chicken shit. That is what they are - just chicken shit organisations and chicken shit agreements which we too wasted our time being a part of.
Lets digress a little bit more. Do you know that since 1978 (that is 47 years ago) there has been a United Nations "peace keeping mission" in Lebanon. It is called UNIFIL or the United Nations Interim Force in Lebanon. This is a joke. Peacekeeping their backsides. Since 1978 there have been so many wars in Lebanon. Tens of thousands of people have been killed. The latest is the Hezbollah war against Israel that began in October 2023 and the consequent Israeli attack against the Hezbollah in Lebanon. Now the conflict has spilled over into Syria.
And for decades now, our country has maintained a Malaysian Battalion in Lebanon. MALBATT stands for the Malaysian military battalion that serves overseas, as part of a United Nations (UN) peacekeeping force.
- I say Tuan-Tuan, what the hell for?
- Has MALBAT stopped the Hezbollah from shooting rockets into Israel?
- Has MALBAT stopped Israel from wiping out southern Lebanon?
- The answer is no.
- If you have problems hearing the answer is NO, NO, NO, NO !!
So how many more decades is it going to take for our kampong boys to understand this? But please do not underestimate our kampong boys. They are not that stupid. They can understand this quite well. I am quite sure that for decades now some retired g*n*rals and others are possibly making money from outsourced logistics and supply contracts to keep our MALBAT operating in Lebanon. There must be big enough money involved.
UNIFIL IS JUST WASTING TIME. JUST BRING THEM HOME. WASTING OUR MONEY.
Back to our story today - we should just lower ALL our import tariffs, import duties, import levies, import excises etc to just 15 % (FIFTEEN PERCENT). This shall be our MAGIC NUMBER - 15%.
Singapore and the US impose only 10% import TARIFFS on each other. 21 countries around the world are doing this (on American imports). Meaning they can survive on just 10% import tax earnings to keep their governments running. To pay the salaries of the Civil Servants, to pay for the Navy, Customs Department etc. Malaysia should do the same.
The smuggling industry will also die a natural death. Which smuggler wants to risk his neck trying to smuggle anything if the import tariff is just 15%? You want to go to jail just for 15%? And this means corruption in the Customs Department will also disappear overnite. Why bribe the Customs fellows with an extra 10% when you only have to pay 15% import tariff? The gomen also need not spend money on new Customs offices, buying new speedboats to chase smugglers or increasing Customs enforcement officials. The savings to the gomen and to the Malaysian economy will run into the tens of billions of Ringgit.
And we should also impose one standard rate of 15% for income taxes and corporate taxes in Malaysia. No need for different personal income tax brackets, no need for 26% corporate taxes, no need for 8% Sales Taxes, etc. Tak payah. JUST ONE MAGIC NUMBER - 15% for the whole country, across the entire economy.
And here is a real nightmare scenario. After Donald Trump's FOUR YEARS, it is most likely that JD Vance (the Vice President now) will become the next US President. Even if it is not JD Vance it will still be a non-woke, anti-immigfation, white Republican president. So for the next 12 years it is going to be non-woke, anti-immigration, white, Republicanism in America.
Lets say they abolish personal income taxes in America (or cut it down drastically). Lets say they abolish corporate taxes in America (they are debating this) or cut it down drastically. Then what will happen?
What will happen is that every factory from China to Zimbabwe will pack up and relocate to America.
- What will happen to Malaysia then?
- Maybe we can still operate halal Air BnB in Langkawi.
- Maybe those Arabs who survive all their fighting will come.
- Tuan-Tuan boleh faham ke?
- Reti baca omputih tak?
- There is a real world out there which is changing very fast.
- Tuan-Tuan jangan tersadai bawah jambatan Sungai Klang.