Malaysia tech firms set to ‘act aggressively’ over Trump’s tariff hikes

Malaysian firms are preparing to “act aggressively” to mitigate the fallout from expected new tariffs imposed by Washington when US president-elect Donald Trump returns to power next month amid market fears of intensifying trade wars.

Global supply chains were unnerved after Trump last week targeted the US’ three largest trade partners. He pledged a 25-per cent tariff hike on imports from Canada and Mexico, demanding that they clamp down on cross-border drug trade and migrant crossings.

Trump also declared an additional 10 per cent tariff hike on China “above any additional tariff”. Earlier, he pledged to raise tariffs on goods from China by 60 per cent.

The proposed tariff hikes on Canada and Mexico, a key intermediate market for Asian auto and tech makers to access the US market, is the clearest indication yet that Trump’s second term from January 20 is expected to rattle global markets and supply chains.

“Malaysian companies are preparing for that,” said Koh Dim Kuan, chief executive of Malaysian semiconductor player 3REN.

“Most companies are planning carefully so that they can act aggressively if any announcements or measures come after Trump comes to power.”