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.
As the world watches, President Trump’s highly anticipated April 2 tariff announcement—coined “Tariff Liberation Day”—is expected to unveil a new era of U.S. trade policy, one that could bring sweeping changes to global commerce, supply chains, and markets. But according to trade experts and insiders, this rollout may be more of a strategic opening salvo than an all-at-once shockwave.
What Will Be Announced?
- Initial Tariff Measures, Not the Full Picture:Wednesday is likely to signal the beginning of a broader campaign, not a final, all-encompassing plan. Expect a phased approach, with room for reviews, exemptions, and negotiations.
- "Country-Based" and “Reciprocal” Tariffs:Tariffs will likely be targeted at countries with large trade imbalances or significant non-tariff barriers. The White House has been analyzing patterns of “trade-distorting behavior” as justification.
- "Dirty Dozen" and Surprises:While some attention has focused on likely targets like China, India, and Brazil, countries like the UK, Canada, South Korea, and even Argentina are also in the mix—due to non-tariff barriers and perceived unfair market practices.
💰 Revenue, Tax Cuts & Economic Strategy
- Massive Revenue Goals:Peter Navarro estimates $600 billion annually from new tariffs, including $100 billion from auto tariffs alone, suggesting tariffs will not just be leverage—but long-term revenue generators.
- Framing as Tax Cuts:Tariffs are being positioned politically as a funding source for major domestic tax cuts, creating a net economic benefit narrative, despite likely inflationary effects.
🏭 The Bigger Vision: Onshoring & Supply Chain Control
- Onshoring Focus:The policy isn’t just about trade disputes—it’s about reshaping American industrial capacity. Expect focus on:
Critical minerals
Semiconductors
Defense-linked manufacturing
Energy and workforce infrastructure
- Realistic Expectations:Experts note that onshoring won’t completely replace imports, but the idea is to reduce strategic dependencyand tariff sectors where U.S. capacity can be rebuilt.
Calibration Over Chaos
Contrary to fears of impulsive policy, insiders claim the rollout will be "data-driven and rational," backed by robust analysis from White House economists.
The plan is designed to "level the playing field"—not just to punish, but to correct long-standing trade imbalances and distortions.
Market Impact
Expect market volatility and sector-specific sell-offs as investors digest tariff details.
Industries reliant on global supply chains (autos, electronics, retail) may react negatively.
Sectors aligned with domestic production (defense, infrastructure, industrials) could benefit.
Tariff-linked inflation could complicate Fed policy and interest rate expectations.
Final Takeaway
April 2 is shaping up to be a critical inflection point for global trade. Rather than a one-day event, it may mark the start of a rolling strategy that reshapes U.S. economic policy, alliances, and manufacturing priorities.
Investors, businesses, and policymakers should prepare for a calibrated but high-stakes game of global economic chess—where tariffs are both a tool of pressure and a blueprint for economic transformation.
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