Donald Trump's administration slapped Malaysia with a 24% export tariff and additional tariff for solar panels. The argument he has been paddling is countries with surplus merchandise trade .... repeat again merchandise trade have been cheating the US and ripping them off.
Malaysia's merchandise trade surplus against the US was US$24.8 billion for 2024. However, the missing part of the full trade equation is the services trade.
US government do not release any official data detailing the services side of trade balance. As an indication, Malaysia's invisible trade deficit has improved to RM13.9 for 2024, but the year earlier in 2023, the deficit was RM43.2 billion.
The US is the leading exporter of services globally with total services exports reaching approximately $1.1 trillion in 2024. It is obviously in favour of the US. If having a surplus is a sin, then who is cheating and ripping-off who?