KUALA LUMPUR, July 9 (Bernama) -- Bursa Malaysia closed lower on Thursday as renewed geopolitical tensions in West Asia weighed on investor sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 5.97 points, or 0.36 per cent, to 1,677.64 from Wednesday's close of 1,683.61. The benchmark index opened 2.62 points lower at 1,680.99, and moved between 1,676.18 and 1,683.80 throughout the session. However, market breadth was slightly positive, with gainers leading losers 533 to 504, while 547 counters were unchanged, 1,112 untraded, and 12 suspended. Turnover slipped to 2.64 billion units valued at RM2.19 billion from 2.96 billion units valued at RM2.18 billion on Wednesday.
The European Union is prioritizing negotiations over retaliatory tariffs in response to US President Donald Trump’s decision to impose 25% duties on steel and aluminum imports starting March 12. EU officials aim to prevent a full-scale trade war, though they remain prepared for countermeasures if talks fail.
🔹 EU’s Strategy: Dialogue Over Retaliation
📌 EU trade ministers held a video conference to coordinate their response, emphasizing a unified front in upcoming negotiations.
📌 While countermeasures were discussed, including reinstating 2018 tariffs on US goods (bourbon, motorcycles, orange juice), the primary approach remains diplomacy.
📌 EU trade chief Maros Sefcovic had his first call with US officials, including Commerce Secretary nominee Howard Lutnick and USTR nominee Jamieson Greer, with both sides agreeing to meet soon.
💬 Irish Foreign Minister Simon Harris: "There is a window for negotiation ahead of the March 12 deadline."
💬 EU spokesperson: "We remain committed to dialogue while protecting EU interests—just as the US is protecting theirs."
⚠️ EU-US Trade at Stake
📌 The US is the EU’s second-largest export market for steel, averaging €3 billion ($3.1 billion) in shipments annually.
📌 EU aluminum exports to the US totaled €2.4 billion in the first 11 months of 2024.
📌 Trump’s tariffs could disrupt major European industries, prompting industry groups like European Aluminium to push for urgent diplomatic talks.
💬 Carlos Cuerpo (Spain’s trade minister): "A general agreement on tariffs is needed, and we will continue with the dialogue."
🛑 Potential EU Countermeasures
📌 The European Commission is holding back details but has options ready:
✔️ Reinstating 2018 tariffs on iconic US goods
✔️ Targeting key US exports to the EU
✔️ Coordinating responses with other US trade partners
💬 German Economy Minister Robert Habeck: "Talks must continue, but the EU must be clear that countermeasures are prepared."
📌 If talks fail, Europe could reintroduce trade penalties, escalating tensions between the two economies.
🔍 What’s Next?
✔️ EU-US trade talks to accelerate before March 12
✔️ Closer coordination among EU member states to ensure a firm stance
✔️ Watch for industry pushback on both sides of the Atlantic
📌 With high stakes for both economies, negotiations in the coming weeks will determine whether this becomes a full-blown trade war or a resolved dispute.
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