Tun Mahathir warns of long-term fallout from Trump’s tariff strategy

In a statement, Dr Mahathir said high tariffs imposed on imported goods into the United States would ultimately be paid by American importers and consumers, not foreign just exporters, potentially leading to a prolonged period of inflation.

“Presumably they will not buy or buy less. That will hurt the exporters,” he said, adding that although trade between other countries could continue unimpeded, overall global trade would likely shrink.

Trump has long pushed for reshoring American manufacturing, but Dr Mahathir noted that relocating production from countries like China back to the U.S. would take time and incur significantly higher costs.

Citing Bloomberg, he said Apple alone would need up to eight years to shift operations from China, making an immediate transition unfeasible.

“Trump expects American industrialists would rush back to produce in the country. Even if they do this, it would take a lot of time,” he added. “He needs to ‘pause’ for eight years.”

Dr Mahathir also highlighted the example of iPhones, which are predominantly assembled in China. He questioned Trump’s recent suggestion to halt imports of Chinese-made iPhones, arguing it would not only hurt Chinese manufacturers but also American companies dependent on overseas production.

“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,” he said.

He warned that attempts to relocate production to the U.S. would not only be slow but result in higher-priced goods that may struggle to remain competitive globally.

“It is not only iPhones. Lots of American products are made in China... and that includes Malaysia and other developing countries,” Dr Mahathir said, questioning how many times Trump would need to “pause” as the consequences of the tariffs unfold.