Former Malaysian Prime Minister, Dr. Mahathir Mohamad, has raised significant concerns about the long-term impact of former U.S. President Donald Trump’s high tariffs on imported goods, warning that the move could ultimately hurt America more than the rest of the world. According to Mahathir, while the primary goal of imposing tariffs is to make imported goods more expensive and encourage the consumption of domestic products, this strategy may not work in America’s favor, especially given the country’s reliance on imports.
For over a decade, the U.S. has outsourced much of its production to countries where labor and manufacturing costs are lower. Mahathir points out that even American brands, like Apple, produce most of their products overseas—particularly in China and India. With the new tariffs in place, products like the iPhone, which are assembled abroad, would face a significant price hike, possibly by as much as 120%. This would lead to shortages of many goods in the U.S., as local production cannot meet the country’s demand.
The former prime minister notes that Trump has already had to delay the high tariffs on electronics, acknowledging the negative consequences of such measures. Similar issues are expected to emerge across various industries, contributing to a substantial rise in the cost of living in the U.S. Mahathir emphasizes that if America attempts to produce these goods domestically, the cost would be so high that they would not be competitive in the global market, nor would they sell well in the U.S. itself.
One of the main concerns Mahathir raises is that the U.S. could face severe shortages of both essential and non-essential goods, as well as critical components for products that American companies currently source from abroad. With higher tariffs and rising production costs in the U.S., the cost of living would surge, pushing wages up, which in turn would increase both production and living costs.
This cycle could result in America losing its foreign markets, as U.S. products would become less competitive internationally. Mahathir also predicts public unrest in the form of protests and demonstrations as Americans struggle with the financial burden of higher living costs and product shortages.
Mahathir’s analysis suggests that Trump’s protectionist approach may backfire, and the U.S. could fail to achieve the economic greatness it seeks. The former prime minister offers a three-month window before this strategy starts to collapse, although he acknowledges that this timeline could be longer or shorter. Time will ultimately reveal the consequences of this economic experiment.
Information Source: thechedet.com
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