KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Key Highlights:
- Trudeau’s Firm Stance:Canadian Prime Minister Justin Trudeau warned that Canada "will respond" if U.S. President-elect Donald Trump imposes 25% tariffs on Canadian imports, emphasizing the significant economic impact on both countries.
- Historical Context:Trudeau referenced Canada’s retaliatory tariffs in 2018 during Trump's steel and aluminum tariff dispute, which targeted politically sensitive U.S. products like bourbon, Harley-Davidsons, and Heinz ketchup. These actions, Trudeau said, effectively pressured U.S. officials to lift the tariffs.
Economic Implications:
- Canadian Concerns: A 25% tariff on all Canadian exports would devastate the Canadian economy and raise costs for U.S. consumers reliant on Canadian goods.
- U.S.-Canada Trade: Canada is the largest market for U.S. exports, with 36 U.S. states counting Canada as their primary export destination.
- Trump’s Approach:Trudeau described Trump’s negotiating tactics as destabilizing and chaotic, designed to create uncertainty and pressure negotiating partners. Despite this, Trudeau called for a calm and united response to navigate potential trade challenges.
Upcoming Challenges:
- Trade Strategy Evolution: Trudeau acknowledged that Trump’s second term may pose greater challenges as his administration comes in with a clearer and more aggressive trade agenda.
- Broader Motivations: Trump’s tariff threats are tied to concerns over migration and fentanyl flows into the U.S., complicating negotiations.
- Optimistic Outlook:Despite these challenges, Trudeau expressed confidence in finding a “win-win” solution, building on the renegotiated North American trade pact in 2018. Canadian officials stressed the mutual benefits of maintaining strong trade ties.
Takeaway:
Canada is gearing up for potential economic conflict as Trump’s tariff threats loom. While Trudeau cautions against panic, he is leveraging historical successes and Canada’s importance as a U.S. trade partner to prepare strategic responses that could pressure the incoming administration into mutually beneficial agreements.
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