Malaysia-US tariff talks concluded, awaiting Trump's official response, says Zafrul
In an Instagram post on Thursday (July 31), Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz revealed that Prime Minister Datuk Seri Anwar Ibrahim had an early morning phone call with President Trump to discuss the status of the tariffs.
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Malay Mail
13 minutes ago
- Malay Mail
World economies reel from Trump's tariffs punch
WASHINGTON, Aug 2 — Global markets reeled yesterday after President Donald Trump's tariffs barrage against nearly all US trading partners as governments looked down the barrel of a seven-day deadline before higher duties take effect. Trump announced late Thursday that dozens of economies, including the European Union, will face new tariff rates of between 10 and 41 per cent. However, implementation will be on August 7 rather than Friday as previously announced, the White House said. This gives governments a window to rush to strike deals with Washington setting more favorable conditions. Neighbouring Canada, one of the biggest US trade partners, was hit with 35 per cent levies, up from 25 per cent, effective yesterday—but with wide-ranging, current exemptions remaining in place. The tariffs are a demonstration of raw economic power that Trump sees putting US exporters in a stronger position, while encouraging domestic manufacturing by keeping out foreign imports. But the muscular approach has raised fears of inflation and other economic fallout in the world's biggest economy. Stock markets in Hong Kong, London and New York slumped as they digested the turmoil, while weak US employment data added to worries. Trump's actions come as debate rages over how best to steer the US economy, with the Federal Reserve this week deciding to keep interest rates unchanged, despite massive political pressure from the White House to cut. Data Friday showed US job growth missing expectations for July, while unemployment ticked up to 4.2 per cent from 4.1 percent. On Wall Street, the S&P 500 dropped 1.6 percent, while the Nasdaq tumbled 2.2 per cent. Political goals Trump raised duties on around 70 economies, from a current 10 per cent level imposed in April when he unleashed 'reciprocal' tariffs citing unfair trade practices. The new, steeper levels listed in an executive order vary by trading partner. Any goods 'transshipped' through other jurisdictions to avoid US duties would be hit with an additional 40 per cent tariff, the order said. But Trump's duties also have a distinctly political flavour, with the president using separate tariffs to pressure Brazil to drop the trial of his far-right ally, former president Jair Bolsonaro. He also warned of trade consequences for Canada, which faces a different set of duties, after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the UN General Assembly in September. In targeting Canada, the White House cited its failure to 'cooperate in curbing the ongoing flood of fentanyl and other illicit drugs'—although Canada is not a major source of illegal narcotics. By contrast, Trump gave more time to Mexico, delaying for 90 days a threat to increase its tariffs from 25 percent to 30 percent. But exemptions remain for a wide range of Canadian and Mexican goods entering the United States under an existing North American trade pact. Carney said his government was 'disappointed' with the latest rates hike but noted that with exclusions the US average tariff on Canadian goods remains one of the lowest among US trading partners. 'Tears up' rule book With questions hanging over the effectiveness of bilateral trade deals struck—including with the EU and Japan—the outcome of Trump's overall plan remains uncertain. 'No doubt about it—the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since World War II,' said Wendy Cutler, senior vice president of the Asia Society Policy Institute. Yesterday, Trump said he would consider distributing a tariff 'dividend' to Americans. Notably excluded from yesterday's drama was China, which is in the midst of negotiations with the United States. Washington and Beijing at one point brought tit-for-tat tariffs to triple-digit levels, but have agreed to temporarily lower these duties and are working to extend their truce. Those who managed to strike deals with Washington to avert steeper threatened levies included Vietnam, Japan, Indonesia, the Philippines, South Korea and the European Union. Among other tariff levels adjusted in Trump's latest order, Switzerland now faces a higher 39 per cent duty. — AFP
Malay Mail
13 minutes ago
- Malay Mail
Anwar's defining week: Broker of peace and economic reprieve
COMMENTARY, Aug 2 — It has certainly been a defining week for Prime Minister Datuk Seri Anwar Ibrahim as he notched double wins at the diplomatic and economic fronts, which even his opponents would find difficult to fault. He has certainly been in top form as he brokered a ceasefire between Thailand and Cambodia, orchestrating a diplomatic breakthrough, and then went on to make a call to United States President Donald Trump at 6.50 am. Anwar received plenty of messages from world leaders congratulating him on the handling of the potentially dangerous conflict between two neighbouring countries. It was a huge test for him as the Chair of Asean, but he pulled off magnificently as he brought the leaders of Thailand and Cambodia to Kuala Lumpur for a dialogue. He also made sure that officials from the US and China, the two important players in the region, were present to observe the talks. It is also evident that Malaysia's neutral posture of not taking sides has shown positive results, as that brought the two countries, locked in conflict, to the negotiating table. Trump himself reportedly intervened in the ceasefire negotiations by threatening both parties with heavy tariffs, but Malaysia's central role in mediating the agreement gave it diplomatic capital. At the same time, Malaysia scored a much-needed economic reprieve after the US agreed to scale back steep tariffs that had been threatening Malaysia's export-driven economy. At one point, Washington had threatened Malaysia with reciprocal tariffs of up to 25 per cent in retaliation for what it claimed were unfair trade practices and currency. This week, the White House agreed to lower the rate to 19 per cent, offering breathing room to Malaysia's key sectors, especially electronics and palm oil. The sound of relief could be heard across the nation. Without doubt, Anwar was properly prepared by officials for his telephone conversation with Trump. But as many world leaders would know, an element of uncertainty can also be expected when dealing with Trump, as some US allies have ended up with high tariffs. Both cases, which Anwar handled well, demonstrated strategic diplomacy which was carried out with precision and the personal charm offensive, which Anwar is good at. By now, world leaders would have watched how Anwar has the ability to lift up the phone to call his counterparts. The world will certainly now see that there is value in Malaysia as a stabilising force and an economic partner. The week has not just been a personal success for Anwar and his government, but as one analyst put it, they are a reminder that middle powers like Malaysia can shape outcomes when they choose engagement over posturing. Thai veteran journalist Kavi Chongkittavorn wrote that Anwar has now positioned himself as a peacemaker. 'Asean is doing a somersault. It just needs decisive leadership,' he said, pointing out that Anwar got the US and China to be present, which was another coup, as 'both superpowers rarely collaborate on anything these days. Yet both sent envoys to support the Asean Chair's initiative.' These successes are not just wins for Anwar's government; they are reminders that middle powers like Malaysia can shape outcomes when they choose engagement over posturing. Writing in the Thai PBS World, he described that on the regional stage, 'PMX just had his finest hours.'' On the economic front, Malaysia has ended up having the same 19 per cent tariff as Indonesia and the Philippines. However, in Jakarta and Manila, there has been reported unhappiness that they have given in too much to Trump. Malaysia stood its ground that it would not allow the red lines to be crossed, particularly on its Bumiputera policy during negotiations. To the protestors who turned up by the thousands calling on Anwar to step down, they may not understand headlines like tariffs or ceasefires, but this week's developments demonstrated the importance of leadership. — Bernama • Datuk Seri Wong Chun Wai is a National Journalism Laureate and chairman of the Malaysian National News Agency (Bernama).
Malay Mail
13 minutes ago
- Malay Mail
Trump orders firing of US official as cracks emerge in jobs market
WASHINGTON, Aug 2 — President Donald Trump said Friday he has ordered the firing of a key economic official, accusing her of manipulating employment data for political reasons after a new report showed cracks in the US jobs market. US job growth missed expectations in July, Labor Department data showed, and revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic. Without providing evidence, Trump lashed out at the department's commissioner of labor statistics, writing on social media that the jobs numbers 'were RIGGED in order to make the Republicans, and ME, look bad.' In a separate post on his Truth Social platform, he charged that Commissioner Erika McEntarfer had 'faked' jobs data to boost Democrats' chances of victory in the recent presidential election. 'McEntarfer said there were only 73,000 Jobs added (a shock!) but, more importantly, that a major mistake was made by them, 258,000 Jobs downward, in the prior two months,' Trump said, referring to latest data for July. 'Similar things happened in the first part of the year, always to the negative,' Trump said, insisting that the world's biggest economy was 'booming' under his leadership. He later told reporters 'we need people that we can trust,' accusing the economic official of inflating hiring figures under former president Joe Biden's administration. 'Dangerous precedent' The United States added 73,000 jobs last month, while the unemployment rate rose to 4.2 percent from 4.1 percent, said the Department of Labour earlier yesterday. Hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000. This was notably lower than job creation levels in recent years. During the pandemic, the economy lost jobs. The employment data points to challenges in the key labour market as companies took a cautious approach in hiring and investment while grappling with Trump's sweeping—and rapidly changing—tariffs this year. The numbers also pile pressure on the central bank as it mulls the best time to cut interest rates. With tariff levels climbing since the start of the year, both on imports from various countries and on sector-specific products such as steel, aluminum and autos, many firms have faced higher business costs. Some are now passing them along to consumers. William Beach, who previously held McEntarfer's post at the Bureau of Labour Statistics, warned that her firing 'sets a dangerous precedent and undermines the statistical mission of the Bureau.' The National Association for Business Economics (NABE) condemned her dismissal, saying large revisions in jobs numbers 'reflect not manipulation, but rather the dwindling resources afforded to statistical agencies.' 'Firing the head of a key government agency because you don't like the numbers they report, which come from surveys using long established procedures, is what happens in authoritarian countries, not democratic ones,' slammed Larry Summers, former US Treasury secretary under Democratic president Bill Clinton. 'Gamechanger' Heather Long, chief economist at the Navy Federal Credit Union, said yesterday's jobs report was a 'gamechanger.' 'The labour market is deteriorating quickly,' said Long, noting that of the growth in July, '75 per cent of those jobs were in one sector: health care.' 'The economy needs certainty soon on tariffs,' Long said. 'The longer this tariff whiplash lasts, the more likely this weak hiring environment turns into layoffs.' It remains unclear when the dust will settle, with Trump ordering the reimposition of steeper tariffs on scores of economies late Thursday, which are set to take effect in a week. A sharp weakening in the labor market could push the Federal Reserve toward slashing interest rates sooner to shore up the economy. Yesterday, the two Fed officials who voted this week against the central bank's decision to keep rates unchanged warned that standing pat risks further damaging the economy. Both Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller argued that the inflationary effects of tariffs were temporary. They added in separate statements that the bank should focus on fortifying the economy to avert further weakening in the labor market. Putting off an interest rate cut 'could result in a deterioration in the labor market and a further slowing in economic growth,' Bowman said. — AFP
