KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Trade tensions are back — and this time, the EU is rallying support.
The European Union is stepping up diplomacy with other U.S. trade targets like Canada and Japan, aiming to form a united front against President Trump’s proposed 30% tariffs on EU exports.
Key Dates:
The EU extended suspension of its countermeasures until Aug 1 to leave room for last-minute negotiations.
If no deal is reached, retaliatory tariffs on US goods worth €21B–€72B are ready to roll.
What Leaders Are Saying
Ursula von der Leyen (EU Commission): Prefers a “negotiated solution” but is “fully prepared” with countermeasures.
Emmanuel Macron (France): Urges faster rollout of the anti-coercion tool if talks collapse.
Friedrich Merz (Germany): Warns that 30% tariffs could hit German exporters “to the core.”
Why It Matters for Investors
Goldman Sachs estimates EU GDP could fall 1.2% by 2026 if these tariffs are implemented and sustained.
Auto, steel, agri exports, and spirits industries will be the most exposed.
Market watchers say the 30% tariff threat might be a negotiating tactic — but retaliation risks are real.
What’s at Stake?
| Sector | US Proposed Tariff | EU Response (Pending) |
|---|---|---|
| Agriculture | Up to 17% | Seeking max 10% |
| Autos & Parts | 25% | Focus of current talks |
| Steel/Aluminum | 50% | Quota & offset proposals |
| Pharmaceuticals | 25%-50% | Seeking exemptions |
| Copper & Chips | 50% | Risk of sectoral retaliation |
What’s Next?
Talks will continue this week, with discussions focused on car tariffs and agricultural rates.
EU is still pushing for preferential treatment and tariff exemptions on sectors like aviation, wine, and medical devices.
Investor Takeaway
Exporters in EU automotive, agri, and metals sectors are vulnerable — keep an eye on stocks like Volkswagen, BMW, Airbus, and Pernod Ricard.
Expect volatility in European markets if talks break down post-August.
Watch for rising support for EU-US nearshoring trends — potentially positive for defense, energy, and food security-related industries.
“The EU isn’t there yet with using its anti-coercion weapon. But make no mistake — retaliation is on the table.”
— Bloomberg
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