KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
President Donald Trump announced a 25% tariff on India’s exports to the U.S. starting Aug. 1, escalating trade tensions and warning of further penalties over New Delhi’s energy and military ties with Russia.
Key Points:
Trump called India’s tariffs “among the highest in the world” and criticised its non-monetary trade barriers.
He also targeted India’s heavy reliance on Russian oil and weapons, saying the country is “Russia’s largest buyer of energy along with China.”
Trump hinted at an additional penalty tied to India’s purchases from Moscow.
Market Reaction:
Indian rupee dropped 0.8% to 87.87 per dollar in offshore trading, hitting a five-month low.
Nifty 50 futures erased gains and fell as much as 0.5%.
Trade Talks in Limbo:
India had been negotiating a trade deal with the U.S. after Prime Minister Narendra Modi’s February White House visit.
Talks stalled in recent weeks over agriculture and tariff issues, with New Delhi toughening its stance.
An Indian official said discussions are ongoing to reach a “mutually beneficial” agreement despite the tariff announcement.
Strategic Implications:
The tariff puts India at a competitive disadvantage, with higher duties than Vietnam (20%), Indonesia (19%), and Japan (15%).
Analysts warn the move could strain U.S.-India relations and undermine efforts to position India as a counterweight to China.
Russia Factor:
India has avoided criticising Russia over the Ukraine war and ramped up imports of Russian oil, now accounting for over one-third of its total crude purchases. About 36% of India’s weapons also come from Russia.
Economists caution that shifting to new suppliers could hurt India’s current account and stoke inflation.
Summary: The 25% tariff marks a sharp turn in U.S.-India trade ties, raising economic and geopolitical stakes. With additional penalties threatened, the focus now shifts to whether ongoing talks can ease tensions before the new duties take effect.
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