Understanding Tariffs: What They Are and Why Business Students Must Pay Attention

By Nash Nithi

A 25% tariff from the United States is about to hit Malaysian exports and the impact could be massive. But beyond headlines and political soundbites, this development carries an important message for current and future business professionals: Understanding tariffs isn’t just for economists. It’s essential knowledge for anyone in business.

What Exactly Is a Tariff?

A tariff is a tax placed on imported or exported goods. Governments use tariffs to protect local industries from foreign competitors and preserve supply to domestic industries. Unfortunately, it can also be used to pressure trade partners during negotiations.

In this case, former U.S. trade official Stephen Olson has warned Malaysia that unless it revamps its trade policies, American tariffs on Malaysian goods will rise to 25% starting August 1. He claims Malaysia isn’t offering enough market access for U.S. products and the U.S. is ready to respond in kind.

That means Malaysian companies doing business with the U.S. could soon face higher costs, disrupted operations and serious strategic decisions.

Why Should Business Students Care?

If you’re studying business, what’s happening now is more than a news story. It’s a live case study. Here’s why it matters:

1. Global Business Is Never Static

Tariffs can change the flow of global trade overnight. Understanding how these shifts affect supply chains, pricing and market access is crucial for business leaders.

2. It’s About Strategy and Survival

Companies affected by tariffs need to act fast. Some may reroute supply chains, others may raise prices or enter new markets. Business students need to learn how to think strategically under pressure.

3. It Connects to Everything You Study

Tariffs tie into what you learn about economics, finance, marketing and management. Whether it’s analysing risk, forecasting revenue changes or managing international relationships, these are the real-world skills you’re building in class.

How Veritas University College Prepares You

Veritas University College’s business programmes are built for the world we live in—fast-moving, unpredictable and deeply connected.

Whether you’re pursuing the Bachelor of Business Administration (Hons) or the MBA (online or conventional), you’ll cover areas like:

Global trade and economics
Strategic planning and risk management
Digital transformation and data analytics
Financial modelling and business law

You’ll explore real-world scenarios just like this one—analysing what a 25% tariff could mean for a Malaysian manufacturer or how companies can shift strategy to stay competitive.

And with micro-credentials and customisable learning pathways, you can specialise in the areas that matter most to your goals—whether it’s international business, finance or digital leadership.

Turning Challenges Into Opportunities

Here’s the truth: tariffs aren’t just a threat. They’re a chance to innovate.

Businesses may enter new markets to avoid tariffs altogether.
Tech can help reduce costs, making companies more competitive despite external pressures.
Strong leadership and strategy can turn disruption into growth.

At Veritas, students don’t just study business. They learn how to lead in times of uncertainty, and how to see opportunity where others see obstacles.

The U.S.-Malaysia tariff dispute is a reminder that global events can change local business overnight. If you're a business student, this is your moment to pay attention, ask questions and connect what you learn in the classroom to the real world.

At Veritas University College, you're not just preparing for a job. You’re preparing to navigate, lead and thrive in a complex global economy.

And right now, that means understanding tariffs.