KUALA LUMPUR, April 4 (Bernama) -- Bursa Malaysia closed lower today, with the benchmark index falling by 0.97 per cent, as persistent selling across various sectors weighed on the market, which continued to feel the impact of sweeping US tariffs. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dipped 14.77 points to 1,504.14 from Thursday’s close of 1,518.91. The benchmark index opened 9.90 points easier at 1,509.01 and fluctuated between 1,500.90 and 1,515.74 throughout the day. In the broader market, losers thumped gainers 777 to 185, while 366 counters were unchanged, 1,031 counters untraded and 19 others suspended. Turnover fell to 1.81 billion units valued at RM1.89 billion against Thursday’s 2.51 billion units valued at RM1.81 billion.
President Trump’s “Liberation Day” tariff announcement marks a structural pivot away from decades of globalization, with broad implications for multinational supply chains, investment strategy, and global trade alignment.
What Happened
President Trump has imposed sweeping new tariffs on trillions in foreign goods, signaling an end to the U.S.’s post-WWII leadership in global free trade.
Baseline import duty: 10%
Reciprocal tariffs:
China: 54% (to rise to 79% if further measures are imposed)
Vietnam: 46%
EU: 20%
Exemptions: Mexico and Canada (goods covered under USMCA), Taiwan semiconductors
“If you want your tariff rate to be zero, then you build your product right here in America.” – Donald Trump
Strategic Intent
Trump's policy aims to:
Reshore manufacturing
Revive U.S. industrial jobs
Force companies to reconfigure supply chains
The policy also reflects broader geopolitical aims, especially targeting China’s dominance in manufacturing and its trade surplus with the U.S., which exceeded $1 trillion in 2024.
Corporate and Economic Impact
Early Investment Response
Apple, Hyundai, Eli Lilly, and J&J: Expanding U.S. operations
Siemens: +$10B investment in U.S. manufacturing
TSMC: Planning $100B investment in U.S. chip capacity
Foxconn, Compal, Inventec: Exploring AI server production in Texas
“We must build the chips and semiconductors that we need right here in American factories.” – Trump
But Execution Challenges Remain
Cost and time to relocate supply chains remain high.
U.S. industry lacks domestic supply of many basic components (e.g., screws, copper, vibration cones).
Corporates like Misco Speakers highlight the difficulty of finding viable non-China alternatives.
Broader Implications
Global capital reallocation is underway, but reindustrializing the U.S. will take years, not months.
Emerging manufacturing hubs like Vietnam, Mexico, and Taiwan face new tariff pressure, limiting "safe haven" options.
Business investment intentions are softening, with companies delaying expansion amid trade-policy uncertainty.
U.S. current account deficit hit $1.1 trillion in 2024, reinforcing Trump's stance but raising questions about underlying structural imbalances.
“You can't just put on tariffs and flip a switch.” – Dan Digre, CEO, Misco Speakers
Key Takeaways
The Trump tariff regime marks a historic shift away from global integration, with broad, long-term investment implications.
Multinationals are responding, but the speed and scale of realignment will be constrained by costs, infrastructure, and supply limitations.
Policy unpredictability and ongoing trade tensions may cause companies to delay investment—posing downside risk to global growth.
While semiconductors and AI hardware may see reshoring support, basic industrial inputs remain globally dependent.
Investors should watch for supply chain reconfiguration themes, reindustrialization plays, and policy spillovers to Asia and EU corporates.
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