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.
Trump’s Global Tariff Blitz Triggers Market Jitters, Opens Door for Negotiation
President Donald Trump has reignited global trade tensions by announcing a sweeping set of tariff letters targeting countries across Asia and Africa—yet stopped short of making them final. In a Monday announcement, Trump threatened tariffs as high as 40% on select imports, including from key trading partners Japan, South Korea, Thailand, and Malaysia. However, he extended a three-week negotiation window until August 1, signaling openness to revised deals.
Key Tariff Targets
25% tariffs: Japan, South Korea, Malaysia, Kazakhstan, Tunisia
30%: South Africa, Bosnia
35%-36%: Thailand, Cambodia, Serbia, Bangladesh
- 40%: Laos, MyanmarThese rates could disrupt everything from consumer electronics to automotive and commodity flows, especially for countries like Japan and South Korea—major exporters of cars and steel to the U.S.
Markets React
S&P 500 fell 0.8%
Nasdaq 100 also down 0.8%
Japanese automakers’ ADRs: Toyota (-4.3%), Honda (-3.9%)
South African rand: -1.5%
Dollar Index: Surged to highest in a week
The moves spooked global investors, coming on the heels of recent highs in U.S. equity markets and persistent uncertainty surrounding trade and inflation.
Negotiation Still on the Table
Trump’s executive order delayed the tariffs until August 1, giving countries one last shot to negotiate. While some, like Vietnam and the UK, have already reached provisional agreements, others—especially Japan and South Korea—are facing political obstacles at home that complicate swift dealmaking.
Geopolitical Undercurrents
Trump also issued a warning against BRICS-aligned nations, threatening an additional 10% levy on countries adopting “anti-American” policies. His approach appears aimed not just at trade but at reshaping global alliances—adding pressure to countries balancing economic ties between the U.S. and China.
Economic Fallout & Legal Risks
While Trump asserts foreign nations bear the cost of tariffs, American importers and businesses are bracing for tighter margins and higher costs. Retailers warn of inflationary effects, with import duties possibly rising from 3% to 20% on average if all threatened tariffs are enacted.
Compounding the uncertainty are legal challenges. The U.S. Court of International Trade recently ruled many of the tariffs illegal, though an appeals court granted a temporary stay. Trump is now also leveraging Section 232 of the Trade Expansion Act—targeting steel, autos, and other critical imports—as a fallback mechanism.
Investor Takeaway
Trump’s evolving tariff agenda is a double-edged sword: it may bolster U.S. leverage in trade negotiations but also risks fueling inflation, disrupting global supply chains, and dampening investor sentiment. Watch closely for updates before the August 1 deadline. A diplomatic breakthrough—or breakdown—could shift market momentum fast.
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