DATUK SERI (DR.) ENG WEI CHUN – THE U.S. TARIFF STORM
Recently, the United States has once again raised tariffs on imports from across the globe. While this may no longer be breaking news, the ripple effects are still very much unfolding. What makes this round more significant is the return of Donald Trump to the centre of American politics. Under his renewed influence, these measures have become increasingly aggressive and sharply focused. Many are puzzled by the rationale behind these policies. But in truth, what’s happening is part of a long-term economic game plan – a calculated move aimed at reshaping the U.S. economy from within. Trump’s goal is simple, yet ambitious: to “Make America Great Again” by regaining economic dominance and pushing for deeper structural reforms.
From my point of view, Trump could have taken a more moderate, left-leaning path like his predecessors, Barack Obama and Bill Clinton, and still secured broad public support. So why did he choose such provocative and divisive policies? Was it a calculated sacrifice made in the name of the American people?
Trump has wielded tariffs like a sword, disrupting the old framework of global trade. His mission? To break China’s lead in manufacturing, force a reset in the global supply chain, and bring jobs back to American soil. On the surface, the approach seems harsh, and comes at a cost. American consumers are feeling the pinch too, with rising inflation hitting households hard. To Trump, international trade is a zero-sum game where any compromise is seen as defeat. In the long run, this aggressive strategy could very well unlock a new growth engine for the U.S. economy. But the real test lies in whether the country can endure the short-term pain that comes with such a radical shift.
Trump’s tactics resemble the bold and forceful stance of Xiang Yu, the “Hegemon- King of Western Chu” in ancient Chinese history. In many ways, Trump has the capacity to play a similar role on the global stage. Militarily, the U.S. maintains a significant lead. China has only two aircraft carriers, America boasts eleven. Technologically, the U.S., through agencies like NASA, continues to dominate the aerospace frontier. As a market, the United States remains the world’s largest consumer economy, a prime target for exporters worldwide. Although China’s population of 1.3 billion is vast, its overall purchasing power still lags behind. When it comes to currency, the U.S. dollar stands firm as the most powerful and widely accepted in the world. The Chinese yuan, along with other BRICS currencies, still has a long way to go before matching the influence of the greenback.
Looking at the current situation, it may not be the right time for China to directly fight back against the U.S. tariff policies. With Trump charging forward like a modern-day Xiang Yu, China has taken a heavy blow. China might be better off learning from Liu Bang, who took a more strategic and subtle route to eventual victory. In the era of Jiang Zemin, China worked hand in hand with the U.S. and successfully seized a golden decade of growth. Later, under Hu Jintao, both sides continued to benefit from cooperation, leading to another decade of steady development. At that time, while some laughed at China’s quiet approach, China focused on long-term goals and stayed the course. Today, China must channel this legacy — applying a “soft touch” to deflect force and preserve its strength.
I truly believe that China’s 3,000 years of civilisational wisdom will guide it through this difficult phase. The best move now is not retaliation, but to stay calm, focus on internal stability, build up its strength, and wait for the right moment. This approach may seem passive on the surface, but in truth, it requires far greater wisdom. If China can use this time to restructure its economy and grow its technology industries, then when the time comes to respond, it may be able to turn the tide in its favour.
Ultimately, the success of Donald Trump’s policies will depend on how strong his political influence remains over the next five years. If he loses power in the short term, or if the next president is not as tough as him, then it will be difficult to realise his vision for America.
Apart from that, we also shouldn’t overlook the power of financial giants like BlackRock, Vanguard, Fidelity, and Freemasons Club. These organisations control nearly two-thirds of the world’s resources. In the business world, there’s a common saying: if you can’t beat your enemy, then work with them, because in business, there are no permanent enemies, only permanent interests.
It is worth noting that many Middle Eastern countries tend to remain silent, and their people are less affected by the situation. This is because countries rich in natural resources feel less of the impact, while those that rely heavily on cheap labour are hit much harder.
For Malaysia, a peaceful and moderate nation on the global stage, history has shown that diplomacy and negotiation have yielded greater returns than confrontation. I believe that our current government, with its emphasis on harmony and cooperation, has the capacity to engage the U.S. in meaningful dialogue to navigate this crisis toward a win-win outcome. At the same time, Malaysia must be prepared. We should remain flexible in adjusting our policies and put in place strategies that attract foreign investment, so we can weather this tariff storm with strength and stability.
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