Here’s what ordinary msians really should know abt USA’s revised 19% tariff & why the hype is more smoke than substance! Boasting abt a 25% to 19% US tariff change sounds nice until u realize semiconductors dominate our exports & are largely exempt!!! 🧵1 
Malaysia exports rm198.6bil to US in 2024 abt 11% of total exports. Electronics & Electrical (E&E) account for 60% of this & only 30% of our E&E exports (mostly semiconductors) are exempt meaning only 40% of trade volume is genuinely at risk from the tariffs!!! 🧵2
Trade weighted average tariff on exports remains around 14%, not the full 25%! Estimated impact on GDP growth where a full 24% hit cuts GDP by 0.3 percentage points, a 10% baseline tariff costs another 0.6 ppts, total potential drag is abt 0.9 ppts max!!! 🧵3
What this 19% tariff means for us?
1. 19% tariff cut is huge! but most affected goods aren’t exported anyway
2. Economy hit hard! but likely GDP slowdown ≤ 0.9%, modest overall
3. Pmx victory! but rakyat still face price hikes and wage stagnation!!! 🧵4
1. 19% tariff cut is huge! but most affected goods aren’t exported anyway
2. Economy hit hard! but likely GDP slowdown ≤ 0.9%, modest overall
3. Pmx victory! but rakyat still face price hikes and wage stagnation!!! 🧵4
The real effect? A nibble on growth, not a bite!! 25% to 19% tariff sounds sexy until you learn most of our exports weren’t taxed to begin with!! The rakyat still pay more & earn less!!! It's not policy buat just a mere propaganda!!! 🧵5
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