KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Upcoming Tariffs on Canada & Mexico
- Starting March 4, a 25% tax on imports from Canada & Mexico will take effect (10% for Canadian energy imports).
- These tariffs were delayed for 30 days to allow both countries to strengthen border security against illegal immigration & drug trafficking.
- Trump justifies the move by citing the fentanyl crisis and its impact on the U.S.
Reciprocal Tariffs Plan
- Signed on Feb. 13, this strategy matches tariffs imposed on U.S. exports by other countries.
- Includes treating value-added taxes (VATs) as tariffs, which could disrupt trade with Europe.
- Implementation dates remain unclear, but major shifts in trade flows are expected.
Steel & Aluminum Tariffs (Effective March 4)
- 25% tariffs on global steel & aluminum imports reinstated to protect U.S. industries.
- Alcoa CEO warns the aluminum tax could cost 100,000 U.S. jobs and hurt American workers.
Potential Future Tariffs
- Trump has hinted at 25% tariffs on autos, semiconductors, and pharmaceuticals, though no timeline has been set.
Market & Economic Impact
- Tariff fears weighed on U.S. stocks, pushing the S&P 500 lower.
- Consumer confidence drops to an 8-month low, as inflation concerns rise.
- Manufacturers worry about long-term consequences, even if some tariffs never materialize.
Summary:
- New tariffs on Canadian & Mexican imports begin March 4, with security concerns driving the policy.
- Global steel & aluminum tariffs reinstated, sparking backlash from U.S. industry leaders.
- Potential auto & semiconductor tariffs loom, creating uncertainty for global trade.
- Market reaction negative, with stocks slipping and consumer confidence shaken.
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