<figure id="attachment_3026819" aria-describedby="caption-attachment-3026819" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="wp-image-3026819 size-full" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/04/4f64a6ee-reciprocal-tariffs-donald-trumps-ap-pic-050425.webp" alt="reciprocal tariffs donald trumps ap pic 050425" width="1600" height="1000" /><figcaption id="caption-attachment-3026819" class="wp-caption-text">Affirmative action has no bearing on the right of nations to criticise the US for President Donald Trump’s move to impose sweeping tariffs, say economists. (AP pic)</figcaption></figure>
PETALING JAYA: Every country affected by the sweeping tariffs imposed by the US reserves the right to voice their objections, irrespective of any affirmative action policy they may have, according to economists.
They pointed out that there is a distinction between the objective to address disparities domestically and seeking competitiveness in international trade.
Goh Lim Thye of Universiti Malaya said that for Malaysia, the New Economic Policy (NEP) was a socio-economic affirmative action programme aimed at addressing disparities and poverty.
“While it included protectionist elements such as Bumiputera quotas in specific sectors, its primary goal was domestic equity, not trade competitiveness,” he told FMT Business.
In contrast, he said, the reciprocal tariffs introduced by President Donald Trump are designed to shield American industries, such as steel and electrice vehicles, from foreign competition, particularly from China.
“These measures are clearly trade-focused, not linked to any form of domestic social restructuring,” said Goh.
“The different motivations and scale between the NEP and the tariffs policy shows that Malaysia has every right to question the US trade measures so long as it is based on sound economic principles.
“Drawing a parellel between the two is, therefore, misleading,” he added.
Just hours after the new levies kicked in on Wednesday, Trump announced a 90-day pause in country-specific tariffs, setting off a market rally around the world. However, he denied China the temporary relief, instead raising it to a prohibitive 125%.
Malaysia, which has been slapped with a 24% tariff, is one of the countries that will get the temporary reprieve.
Goh said Malaysia’s arguments against the tariffs should be grounded on international trade norms and mutual economic interests.
He argued that World Trade Organization (WTO) rules, market distortions, and the global implications of protectionism were relevant grounds for critique.
TKS Yugendran of the think tank Bait Al-Amanah agreed that Malaysia’s past does not invalidate its present concerns.
“The global geopolitical and economic landscape is full of hypocrisies. Everyone’s trying to survive and get ahead.
“But let’s be clear, Malaysia has never implemented blanket tariffs like those we’ve seen from the Trump administration. Our approach has been far more selective,” he told FMT Business.
Yugendran said that given the huge role the US plays in global trade and finance, its tariffs policy will carry disproportionate weight.
“What the Trump administration is doing here can start a global trade war that affects everyone. It doesn’t just reduce trade, it affects trust, sets dangerous precedents, and creates ripple effects through financial institutions,” he said. “So yes, Malaysia has a legitimate reason to oppose the tariffs.”
Dr Nazari Ismail of Universiti Malaya pointed out that while every country has a right to act in their own interest, that right is not absolute.
“Unless trade measures violate existing agreements, sovereign nations like the US are free to act,” he told FMT Business.
On the other hand, he said, Malaysia also has valid reasons to raise concerns, especially when those policies could destabilise global trade.
Nazari also noted that many American economists have also voiced their concerns with the negative effects of the tariffs on the US economy, implying the criticism is not only warranted but also necessary.

MatchPoint Times

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