GEORGE TOWN – After US President Donald Trump waged trade wars against Canada, Mexico and China by imposing steep tariffs against them, DAP chairman Lim Guan Eng has urged Malaysia to stand in solidarity with these countries as our own might be face the ripple effects.
Earlier today, Trump imposed a 25% tariff on goods imported from Mexico and energy imports from Canada and a 10% tariff on Chinese imports. Lim, a former finance minister, said that it is still unknown whether Malaysia would be affected by Trump’s moves against these three countries.
However, he noted that given Malaysia’s close links with the global economy, it would be affected – especially if the global supply chain is disrupted because of Trump’s tariff push.
“That’s why I want to call upon the Malaysian government – since we will also be impacted by Trump’s tariff – let us stand together with Mexico, Canada, and China against the imposition of tariffs by Trump,” said Lim in his speech delivered at the Penang DAP’s Chinese New Year open house event that held at Penang Chinese Town Hall, here today.
“These tariffs will have a negative impact on our economy. We will raise (this matter) when the Parliament convenes tomorrow, and we will appeal to our beloved Prime Minister (Datuk Seri Anwar Ibrahim) and ask him to take certain economic measures to reduce the impact of Trump’s tariffs on the country and Penang.”
The fiery speech delivered by Lim was also witnessed by Zhou Youbin, the Chinese Consul General in Penang, who was one of the guests of honour at the event.
“We (Malaysia) want to show that we are with the people, the businesses and the workers, because we know that Trump’s tariff will hurt everyone – not just Americans, but everybody in the world,” he added.
China, Mexico, and Canada’s retaliation
The Bagan MP’s call came amid China’s denouncement of the Trump administration’s imposition of a long-threatened 10% tariff on Chinese imports while leaving the door open for talks with the US which could avoid a deepening conflict.
China’s finance and commerce ministries said that Beijing will challenge the American president’s tariff at the World Trade Organisation (WTO) as a symbolic gesture, and take unspecified “countermeasures” in response to the levy, which takes effect on Tuesday, according to Reuters.
The republic’s commerce ministry said that Trump’s move “seriously violates” international trade rules, and urged the US to “engage in frank dialogue and strengthen cooperation”.
Meanwhile, Mexican President Claudia Sheinbaum ordered retaliatory tariffs against the US yesterday. Sheinbaum said her government sought dialogue rather than confrontation with its top trade partner to the north, but that Mexico had been forced to respond in kind.
“I have instructed my economy minister to implement the Plan B we’ve been working on, which includes tariff and non-tariff measures in defence of Mexico’s interests,” Sheinbaum posted on X, without specifying what US goods her government will target.
The US, so far, has been the Latin American nation’s most important foreign market, and Mexico in 2023 overtook China as the top destination for US exports.
The country has been preparing possible retaliatory tariffs on imports from the US, ranging from 5% to 20%, on pork, cheese, fresh produce, manufactured steel and aluminium, according to sources familiar with the matter. The auto industry would initially be exempt.
As for Canada, Prime Minister Justin Trudeau announced that 25% levies will be slapped on a raft of US imports such as American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump’s home state of Florida.
Canada would also target goods including clothing, sports equipment and household appliances
Trudeau said that the tariffs, covering C$155 billion (US$107 billion or RM476.63 billion) in US goods, will be implemented in two phases: C$30 billion effective Tuesday and the remaining C$125 billion within 21 days. He reiterated Canada’s commitment to defending its economic sovereignty while urging diplomatic solutions to prevent a prolonged trade dispute, Reuters reported. – February 2, 2025