US Tariffs: A Self-inflicted Wound With Global Consequences

By Sukudhew (Sukhdave) Singh

KUALA LUMPUR, April 6 (Bernama) -- The United States’ (US) sweeping tariffs, and the inevitable retaliatory measures, are a dangerous and misguided approach to trade.

Unlike targeted, bilateral negotiations, these broad tariffs inflict widespread economic damage. The claim of "reciprocity" is a fallacy; trade surpluses don't necessarily equate to manipulation.

 

Economic Fallout: A Clear and Present Danger

These tariffs will stifle global growth, inflate prices, and exacerbate unemployment, disproportionately harming middle and lower-income families, including those in the US.

This is a classic "beggar-thy-neighbour" strategy, aiming to artificially boost domestic demand and production at the expense of trading partners.

 

The Burden will Fall on US Consumers too

The notion that exporters bear the tariff burden is false. Increased costs are passed directly to US importers and consumers, making everyday goods more expensive.

These tariffs are effectively a tax on the American people. Sure, exporting nations will suffer reduced competitiveness and demand for their goods in the US.

But, the ripple effects through complex global supply chains will amplify the stagflationary impact of these tariffs across countries, and the US will not be spared.

 

Southeast Asia: A Vulnerable Epicentre?

Nations deeply integrated into global supply chains, particularly in Southeast Asia, face a grim prospect: deteriorating balance of payments, weakening currencies, slowed growth, and surging inflation.

 

A Global Hydra Unleashed

The US has ignited a trade war, unleashing a multi-faceted threat to the global economy. The potential for catastrophic damage is real, likely far exceeding current projections.

 

A Plea for Sanity

We urgently need responsible leadership, especially from the US, to avert a global economic crisis. This is not a time for reckless protectionism; it is a time for reasoned diplomacy.

-- BERNAMA

Sukudhew (Sukhdave) Singh is Former Deputy Governor, Bank Negara Malaysia (BNM)

First posting of this can be accessed at: https://www.linkedin.com/in/sukudhew-sukhdave-singh