KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Peter Navarro emphasized that tariffs will play a crucial role in President Trump’s economic strategy, highlighting plans to review global trade practices and enforce fair trade through reciprocal tariffs to protect U.S. industries and national security.
🔹 Key Takeaways from Navarro’s Remarks
🔹 U.S. to investigate global trade practices before imposing tariffs after April 1.
🔹 Tariffs aim to reduce the $1 trillion annual U.S. trade deficit, which Navarro labeled a national emergency.
🔹 Focus on fairness: The U.S. seeks reciprocal tariffs—if countries lower tariffs on U.S. goods, the U.S. will reciprocate.
💬 Navarro: "America has the lowest tariffs in the world, and it’s not fair. President Trump wants a level playing field."
📊 Industries in Focus
🔹 Steel & Aluminum: Tariffs will remain due to national security concerns and global subsidies from countries like China, Japan, Brazil, and South Korea.
🔹 Auto Industry: Navarro highlighted the 10% EU tariff on U.S. cars compared to the 2.5% U.S. tariff, adding that the EU’s 19% VAT further disadvantages U.S. automakers.
📌 Why It Matters: Tariffs aim to boost U.S. manufacturing, jobs, and defense industries, while also generating revenue for the government, akin to pre-1913 U.S. economic structures.
💬 Trade Policy Outlook
🔹 Tariffs are here to stay, especially on critical industries like steel and aluminum.
🔹 U.S. companies fearing tariff impacts, like Ford, have expressed concerns, but Navarro dismissed these fears, citing positive past outcomes from previous tariffs on China.
💬 Navarro: "Tariffs will bring in revenue, protect our industries, and attract investment."
🔍 What’s Next?
✔️ U.S. trade team to assess global tariffs and announce measures after April 1.
✔️ Potential escalation with China, with tariffs possibly rising to 50%-60%.
✔️ Focus on boosting U.S. productivity and manufacturing through tariffs, deregulation, and tax cuts.
📌 Tariffs will be central to Trump’s trade policy, with broad implications for global trade dynamics and U.S. businesses.
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