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...
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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