KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
President Trump has launched the most sweeping U.S. trade policy shift in decades, announcing a universal 10% tariff on all imports and targeted reciprocal levies—marking a new phase in protectionist economic strategy.
What Was Announced
A universal 10% tariff now applies to all imported goods, regardless of origin.
Reciprocal tariffs are layered on top for nations deemed to have unfair trade practices:
China: 34%
European Union: 20%
Additional 25% tariffs are planned or in effect on:
Cars not made in the U.S. (effective Thursday)
Some car parts (by May 3)
Steel, aluminum, computer chips, pharmaceuticals, and lumber (varied timelines)
Secondary tariffs apply to nations purchasing oil from Venezuela.
“If you want your tariff rate to be zero, then you build your product right here in America.”— Donald Trump, Rose Garden speech
Strategic Context
Trump’s move reflects a long-promised break from the globalization era. The new tariff architecture is designed to:
Incentivize domestic manufacturing
Reorient global supply chains toward U.S. soil
Penalize “Dirty 15” trade partners with high non-tariff barriers or large trade surpluses
The decision follows internal White House debate over whether to pursue a uniform tariff or targeted reciprocals. In the end, the approach combines both.
Market Reaction & Economic Concerns
S&P 500 ETFs fell ~2% in after-hours trading following the announcement.
Economists warn of inflation risks, higher input costs, and slower global investment.
Tariff layering is expected to amplify impact across sectors, according to TD Cowen.
“Tariffs are likely stacking.” – Chris Krueger, TD Cowen
While some U.S. manufacturers and labor groups support the move, many analysts see economic fallout and question execution speed, especially for high-tech sectors still reliant on global supply chains.
Unresolved Issues
Canada and Mexico remain partially exempt under USMCA, but exemption details may change.
The White House has yet to clarify timing on sector-based tariffs, including those on:
Pharmaceuticals
Semiconductors
Lumber
Key Takeaways
The 10% universal tariff marks a historic policy pivot, impacting virtually all U.S. imports.
China, EU, and other major partners face additional duties, escalating trade tension globally.
Markets turned lower post-announcement, reflecting fears of inflation, cost pressure, and retaliation.
The policy shift raises execution challenges for firms dependent on global sourcing, especially in automotive, tech, and industrial components.
Investors should watch for sector-specific fallout, inflation-linked trades, and central bank response in coming months.
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