I used to scroll past global news about “Trump tariffs” and think, “That’s a US-China thing — not my problem.”
But over time, especially working in the corporate world and dabbling in investing, I’ve realised: some policies, even if announced thousands of kilometres away, can sneak into our Malaysian lives.
They show up in how much we pay for electronics, how stable our job feels, or even in how our EPF grows.
If you’re a fellow Malaysian employee or investor wondering why tariffs should even be on your radar — let’s unpack this together.
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First Off, What Are Tariffs?
A tariff is a tax that a country puts on imported goods.
It makes foreign products more expensive, supposedly to protect local industries.
Let’s say the US imposes a 25% tariff on Chinese semiconductors. That means any US company buying those semiconductors from China has to pay 25% more in taxes — effectively raising the cost of production.
The goal? Make local US-made products seem cheaper in comparison, and boost American manufacturing.
But here’s where it gets complicated. Other countries (like China) don’t just sit quietly. They usually retaliate by imposing their own tariffs.
This back-and-forth becomes a trade war — and global businesses (including those in Malaysia) often get caught in the crossfire.
Why This Affects You — Even If You Don’t Work in Trade
You may not be working in a shipping port or export business, but the effects of tariffs ripple out much further than we think.
1. Your Company’s Costs Might Go Up
Even if your office is just dealing with spreadsheets and client calls, your company probably relies on a supply chain. For example:
- Your IT team buys laptops made with parts from China.
- Your finance department uses imported software licenses.
- Your office furniture supplier sources wood or plastic from abroad.
When tariffs raise the prices of these imported goods, your employer might have to:
- Reevaluate vendor contracts
- Delay projects
- Cut costs elsewhere
And when businesses cut costs, it’s usually internal spending that gets hit first.
You know — the L&D budget, corporate retreats, free lunches… sometimes even headcount.
2. Your Bonus or Salary Growth Could Be Stalled
When companies face higher operating expenses due to increased import costs, one of the easiest ways to stay within budget is to freeze:
- Salary increments
- Performance bonuses
- Promotions or new hiring
So even if you’ve been putting in the hours and crushing your KPIs, macroeconomic conditions like tariff-related inflation can stall your compensation.
In many financial institutions here in Malaysia, bonuses aren’t just based on individual KPIs — they’re also tied to how well the company performs as a whole, especially in terms of investment returns.
Let’s say your company manages its own investment portfolio, which includes global equities or funds with exposure to US markets. If Trump’s tariffs disrupt global trade and cause stock markets to dip, the company’s portfolio might underperform.
And when that happens?
You guessed it — your bonus pool might shrink too.
So even if you’ve been clocking in the hours, hitting targets, and giving your best, external macroeconomic shocks like tariff-related volatility can quietly stall your compensation.
Not because of your performance — but because the company didn’t meet its broader financial goals.
Personally, I’ve seen this play out before — when performance bonuses were suddenly lower than expected, partly due to “investment headwinds” the company faced that year.
Coincidence? Probably not.
3. Malaysia’s Role in the Global Economy May Shift
Here’s something many people overlook: tariffs can change the flow of global business.
For instance, if US companies no longer want to import from China because of steep tariffs, they’ll start looking for alternative countries — like Vietnam, Indonesia… and maybe Malaysia.
That sounds like a good thing for us (more jobs, more business), right?
Yes — but it also depends on how ready we are to fill the gap.
We need the infrastructure, talent, and business-friendly policies to be seen as a competitive alternative. If we’re not quick to adapt, those opportunities might go to others.
On the flip side, if Malaysia is already part of the supply chain that’s being taxed — we could lose business too.
How It Impacts Your Wallet & Investments
Okay, let’s talk about what really matters: your money.
Whether it’s your take-home pay, your travel budget, or your investment portfolio, tariffs and currency movements have a direct — and sometimes sneaky — impact.
4. Currency Instability: It’s Not Just About a Weak Ringgit Anymore
Traditionally, every time there’s talk of a trade war or geopolitical tension, global investors panic. They usually pull their money out of “riskier” emerging markets like Malaysia and move it into the US dollar, which is seen as a safer bet.
This flow of money strengthens the USD and weakens the MYR — and when that happens, you’ll notice:
- Online shopping from US-based stores suddenly costs more (thanks to forex rates)
- Holidays to Japan, Europe, or the US burn a bigger hole in your pocket
- Imported goods — like laptops, smartphones, cars, and even certain foods — get pricier
BUT here’s the twist.
According to experts, this is partly because the US Dollar Index (DXY) dropped, showing weaker global demand for the USD.
So, does this mean everything’s fine?
Not exactly. SPI Asset Management highlights that U.S.-China trade tensions have shifted from being about policy to more about political posturing, which creates uncertainty and keeps markets on edge.
While the Ringgit is stronger for now, the situation is still unpredictable.
What This Means for You:
- If you shop in USD or plan to travel abroad, now might be a good time to take advantage of the stronger Ringgit.
- If you’re holding USD via Wise (like I do) as a hedge, be smart about when you convert. Rates can turn quickly if a new tariff or political announcement hits.
- For long-term investors, keep an eye on how tariff developments influence U.S. stock market returns — especially if your portfolio includes VOO, IVV, or other USD-denominated ETFs.
Tariffs create ripples — and currency fluctuation is one of the first signs that the global market is reacting.
If you’re not watching, it’s easy to get caught off guard.
5. Stock Market Volatility (Yes, Even EPF Is Affected)
US stock markets often react to tariff news. If Trump increases tariffs and triggers a trade war, major indices like the S&P 500 could take a hit.
Here’s where it hits home:
- If you invest in VOO, IVV, or US tech stocks via StashAway, Wahed, or Rakuten Trade — short-term volatility is expected.
- If you’re fully invested in the US market, your portfolio could drop in value (temporarily or long-term, depending on how deep the trade war goes).
- Even your EPF has overseas investments — including US equities and bonds. A big drop in the global market could slow EPF’s dividend growth.
That’s why I always say: don’t freak out over short-term dips, but be aware of why they happen.
So… What Can You Do About It?
Tariffs are political. They’re unpredictable. And no — you and I can’t stop them. But we can adjust how we react.
1. Stay Informed (But Not Overwhelmed)
You don’t need to be an economist. Just understand the basics of what tariffs mean and which countries are involved. That context helps you make smarter financial choices.
2. Diversify Your Income
The best defence is having multiple income streams. Your salary is great — but having a side hustle, freelance gig, or online business gives you backup.
3. Diversify Your Investments
Don’t bet everything on one market. I’m personally:
- 80% in US ETFs (like VOO)
- 15% in BTC
- 5% in other classes of assets
That mix gives me exposure to long-term US growth, but also hedges against currency swings and inflation.
4. Save in Multiple Currencies
I use Wise to store USD and EUR.
If the ringgit drops, I’m not fully affected.
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- Why I Store My Cash in USD (and More!) with Wise Malaysia
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Final Thoughts
Tariffs might sound boring or irrelevant — especially if you’re just working your regular 9-5 in Malaysia. But the world is more connected than ever.
What Trump says in the US can shake the stock markets, shift job trends, and mess with our wallets here at home.
So stay informed. Stay diversified.
And remember — we may not control policy, but we can control how we prepare for it.
If you found this helpful, share it with someone who’s investing, working in corporate, or just trying to make sense of all this “trade war” stuff.
