KUALA LUMPUR, Jan. 23 (Xinhua) -- A Malaysian research house warned on Tuesday that while the protectionist tariffs on imported solar panels and washing machines are expected to drag some Asian countries' exports, U.S. consumers may also have to bear the brunt of higher product prices.
"The major consequences of these moves are increased prices of washers and solar panels as well as inflation rate in the U.S. in which the American consumers who would bear the cost," said Malaysia's MIDF Research in a report.
With the steep tariffs, MIDF views the demand on manufactured goods, especially products relating to washers and solar panels, will drag down Malaysia's exports to the United States.
"We forecast Malaysia's exports growth to the U.S. will decelerate to 3 percent to 5 percent this year as compared to 11.8 percent yearly growth in 2017," it said.
According to the report, the direct exports to the United States constitutes 9 percent of Malaysia's total outbound shipments, and more than half of the exports are electrical and electronic products and other manufactured goods.
U.S. President Donald Trump on Monday approved steep tariffs on imported washers and solar cells and modules, amid worries about intense trade frictions between the United State and its trading partners.
Trump will impose tariffs of up to 50 percent on imported washers for the next three years and of up to 30 percent on solar cells and modules for the next four years, said the Office of the United States Trade Representative in a statement on Monday.
The decision was based on the findings by the U.S. International Trade Commission that increased foreign imports of both products "are a substantial cause of serious injury to domestic manufacturers," the statement said.
The move marked the first time that the U.S. government has ever used the so-called Section 201, an outdated tool under a rarely used Trade Act of 1974, to unilaterally impose tariffs or other trade restrictions on foreign imports since 2001.
Moving forward, MIDF expects that the Trump administration will impose tariffs on steel and aluminum industries.
"We foresee further protectionism moves to be made by the U.S. government in order to 'protect' its economy. On the other hand, such moves would spur market uncertainties, lower business confidence, affect commodity prices and to the extent could drag down global growth in the medium term," it said.
Further protectionist moves by the Trump administration will possibly hit global trade activities as well as exports demand on Malaysia's external trade performance in 2018, it added.
