Last Updated on April 9, 2025 by Chin Yi Xuan

What a week! 

By now, you should’ve heard the news – where Malaysia and Singapore have been hit with a 24% and 10% reciprocal tariff by Trump (the almighty US president).

In this newsletter, I want to discuss this topic from a more personal lens: 

  • How will all of these affect you? 
  • Is your job and income safe?

Quick recap: What happened?

  1. Trump introduced a ‘reciprocal’ tariff on multiple countries, including MY and SG, to reduce US’ trade deficit and encourage jobs to flow back to the US.
  2. Basically, Trump is saying: 

“MY & SG, you guys have been charging us tariffs, now it’s time for us to charge you back.”

Ultimately, he is forcing the world to go to the negotiation table so he can negotiate a ‘fairer’ trade deal for the US.

To learn more about tariffs, I posted my quick thoughts on IG HERE, or check out these amazing videos HERE and HERE. 

Now that’s out of the way, here’s my thoughts on how it’ll affect you and potentially, your career:

How will all these affect you?

Above all, the broad-based tariff that Trump introduced has one key impact: It is more expensive to do business with the US.

  • Loss of job opportunities: Some US companies may need to relocate their business facilities/resources back to the US.
  • Things may become more expensive: Some companies may have to rebuild their supply chain, which will disrupt the business in the short to medium term. Things will (generally) become more expensive as consumers bear the cost of all these rebuildings.
  • Weaker currency: Currencies like MYR could become weaker relative to the USD in the long run.

“Am I at risk here?”

At the time of writing, our leaders are probably seeking to negotiate with the US – so from now to 9th April (the day Trump’s tariff becomes effective), anything is possible.

Regardless, under Trump’s rule, I think some people’s livelihoods might be at more risk than others:

  1. If you work for a US company that is located outside the US. (Risk: Company reducing workforce or relocating back to the US)
  2. If the company you work for has a lot of clients from the US. (Risk: Potential slowdown in business, cost-cutting, or layoffs)
  3. If you run a business with a lot of clients from the US. (Risk: Higher cost of doing business)

Is a Recession coming?

A recession is generally defined by at least 2 consecutive quarters of shrinkage in economic growth (GDP).

Here’s how I think it could happen:

  • Tariffs cause abnormal inflation in the US
  • The US Federal Reserve (FED) might be forced to raise its already high interest rate to slow inflation.
  • High interest rate makes borrowing more expensive, leading to a slowdown in US economy.
  • The world economy is dragged along as the US is the world’s largest consumer market.

Simply put, if the US caught fire, we’d also get into trouble.

Let’s hope I am wrong, though many institutions are now looking at potential recession should the tariff go as planned (note: These institutions always get their predictions wrong though, haha!).

What can we do?

On the brighter side, I think we still have time to prepare for all these potential uncertainties:

  1. Career prep: It’s a good time to reflect on our strengths and skillsets. Are my existing skills transferable to other companies or industries? Should I consider upgrading my skillsets?
  2. Emergency funds: Do I have 3 -6 months of life expenses saved up? If not, it is a good time to replenish my emergency fund (cut spending, save up). 
  3. Investment: The stock market tends to be bullish in the long run. Avoid disturbing your long-term investment routine regardless of market conditions and news.

Final thoughts: Never put yourself in the mercy of others

Regardless of how this tariff situation would turn out in the end, this incident taught me a great lesson:

  • Never overrely on one source of income – be it as a country or a person.

When countries rely too much on the US (or even China) for trade, they are at the mercy of these big powers at the negotiation table.

When we rely only on a single source of income, we are at the mercy of our superiors/clients without the freedom of choice.

That’s why I built the Freedom Fund, my dividend portfolio, so one day I can achieve 100% freedom to pursue meaningful projects in life without having to worry about money. 

I hope this post has been helpful, stay tuned as I will be sharing more dividend investing insights in the coming weeks!

– Yi Xuan

Disclaimers:

None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy.  Investment involves risks.  Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions.

Any discussion or mention of an stocks or ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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