KOTA KINABALU — The incoming (and former) US president Donald Trump has vowed to significantly raise tariffs on products imported into the US upon taking office again next month. This has caused a not insignificant panic around the world, regardless of whether a country is a friend or foe of the US, because the US remains the world's largest economy with astonishing consumer power, making it the most desirable export destination. Recently, for example, Trump floated the idea of imposing 25-percent tariffs on goods imported from America's two closest neighbors and largest trading partners, Mexico and Canada.

As a result, there has been much discussion all round about the impact of the US increasing tariffs. This is also why I have not focused much on Trump's much-feared tariffs in recent articles. Instead, I have paid more attention to another economic issue related to the US that might be somewhat overlooked amid the understandable focus on tariffs, but one that could still significantly impact the regional economy and beyond. And that concerns the repercussions of the exchange rate between the US dollar and regional currencies.

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