US tariffs to have bigger impact on economy in 2026
The new US tariff regime will have a greater impact on Malaysia’s economy in 2026, with gross domestic product (GDP) growth projected to be lower, said the finance ministry.
The tariff is expected to cut GDP growth by 0.76% next year, with a direct impact of 0.15% and indirect impact at 0.61%, said its 2026 Economic Outlook report.
The country’s exports and imports of goods and services is expected to fall by 1.38% and 0.64%, respectively.
For 2025, the US tariff is expected to reduce GDP by 0.38%, with a direct impact of 0.07% and indirect impact at 0.31%.
“The impact of (the US) tariff is anticipated to be greater in 2026 as it will reflect a full-year effect compared to the five-month (August to December) effect in 2025,” the report said.
Malaysia’s nominal GDP in 2024 was RM1.65 trillion, a 5.1% growth from 2023.
The US government had imposed a reduced tariff rate…
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