Sab Rahman @SabRahman154504 - Twitter Profile

𝗛𝗜𝗚𝗛 𝗧𝗔𝗥𝗜𝗙𝗙𝗦 1. The news is all about high tariffs, I am not a financial man, not even an economist. But what I understand from Trump’s high tariff is that goods or services imported into the U.S. will pay high taxes. 2. Who will pay? Not the exporters. The American importers and consumers will eventually pay. Presumably they will not buy or buy less. That will hurt the exporters. 3. But the trade between all the other countries are not subject to high tariffs. There would be no tariff barriers by these countries. It may be possible to expand trade with them. Still world trade would diminish. 4. Now what will happen to America. Trump expects American industrialists would rush back to produce in the country. 5. Even if they do this, it would take a lot of time and American cost would be high. Bloomberg says it would take eight years for Apple to move out of China. Apple was shifted to India. America would still have to import. This is not what Trump wants. He wants all industries to be in America. That would take another eight years. He needs to “pause” for eight years. 6. So American consumers would have to pay more than the pre-tariff prices for a long time. In other words there would be perpetual inflation. 7. Now Trump has decided to “pause” the imports of iPhones from China. Why? Almost all American iPhones are made in China. High tariffs mean these phones cannot be sold at pre-tariff prices in America. China may lose the American market. But so will the American companies, perhaps more. In Malaysia we will pay the old prices. 8. The companies just cannot relocate production in the U.S of A. it would take time and higher cost. Even if they succeed the iPhones would be costly. They cannot compete in the world market. 9. So Trump have to pause. How long? I don’t think 90 days is enough. 10. It is not only “iPhones”. Lots of American products are made in China. In fact lots of American products are not made in America. And that includes Malaysia and other developing countries. 11. I wonder how many pauses Trump will have to make. 12. Incidentally Malaysia has a great experience with tariff. Maybe Trump should study Malaysia. DR MAHATHIR BIN MOHAMAD 15 April 2025

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