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’s sweeping “Liberation Day” tariffs excluded steel and aluminum already under existing 25% duties, offering relief to U.S. manufacturers and avoiding further cost inflation in the metals supply chain.
What Happened
Imported steel and aluminum, already subject to a 25% tariff (in place since 2018), were not included in the new reciprocal tariff regime announced Wednesday.
Trump expanded the original metals tariffs last month to include hundreds of finished products, but refrained from adding new reciprocal duties on raw steel/aluminum imports in the latest move.
Market Impact
The decision eases pressure on U.S. metal buyers, who were bracing for even higher costs if reciprocal tariffs had been extended to steel and aluminum.
Steel stocks edged higher:
Nucor (NUE) +2.82%
U.S. Steel (X) +0.55%
Kaiser Aluminum (KALU) +0.37%
Century Aluminum (CENX) +1.09%
Reliance Steel (RS) +1.69%
Strategic Implications
U.S. steelmakers remain supportive of tariffs, arguing that overcapacity and dumping from Asia continue to depress prices.
Trade group leaders maintain that the 25% baseline tariff has helped stabilize the domestic industry and protect jobs.
Avoiding an additional round of tariffs prevents a supply shock for downstream industries—particularly automotive, aerospace, and infrastructure—already navigating higher input costs from prior trade policies.
“Tariffs give domestic producers pricing power when imports become more expensive.”— WSJ analysis
Key Takeaways
Steel and aluminum escape new reciprocal tariffs, reducing risk of further cost escalation for U.S. buyers.
Existing 25% tariffs remain in place and were recently expanded to include more finished goods.
The move reflects a strategic balance: maintaining protection for domestic metals while minimizing inflation pressure for manufacturers.
Steelmakers remain net beneficiaries, while sectors dependent on steel/aluminum inputs gain short-term clarity.
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