Beware the new US ‘border tax’ plan

A NEW and deadly form of protectionism is being considered by US leaders, and it could have devastating effects on the exports and investments of developing countries like Malaysia, as well as destabilising the world economy.

The plan, known as a border adjustment tax, would have the effect of taxing imports of goods and services that enter the United States, while also providing a subsidy for US exports which would be exempted from the tax.