KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Trump’s Tariff Blitz Expands: 50% Copper Tariffs, Pharma in Crosshairs — Global Supply Chains on Edge
US President Donald Trump has escalated his global trade offensive, announcing a 50% tariff on imported copper and signaling imminent levies on semiconductors and pharmaceuticals. This move marks a significant broadening of the trade war and has sent shockwaves across commodities and equities markets. The policy shift further complicates trade negotiations with over a dozen major US partners, including Japan, South Korea, Brazil, and the EU.
Key Highlights:
Copper Tariffs Set at 50%
US copper futures spiked +10%, driven by expectations of constrained global supply.
Industries at risk: EVs, power grids, military systems, and electronics.
Potential winners: US-based copper miners (e.g., Freeport-McMoRan), select LATAM and African producers not impacted by new duties.
Pharmaceutical Sector on Notice
Trump floated 200% tariffs on drug imports, though possibly delayed by a year.
US pharma stocks fell, on fears of higher input costs and disrupted global supply chains.
Risk for global CDMOs, generics manufacturers, and EU-based exporters.
Semiconductors in the Firing Line
Investors brace for long-threatened tariffs on chips, raising concerns for Taiwanese, Korean, and Japanese suppliers.
Possible tailwinds for domestic US chipmakers (e.g., Intel, AMD), but risk to global tech valuations remains.
Global Trade Fallout: Country-Specific Impacts
| Country | Proposed Tariff | Key Export Sectors at Risk |
|---|---|---|
| Malaysia | 25% | Electronics, rubber, machinery |
| Japan, South Korea | 25% | Automobiles, semiconductors |
| Brazil, India | 10% | Agricultural products, pharma |
| Thailand, Cambodia | 36% | Textiles, footwear, E&E |
| Laos, Myanmar | 40% | Raw materials, garments |
| South Africa | 30% | Metals, minerals |
US tariff rate now at 17.6%, the highest since 1934 (Yale Budget Lab).
Trump: “Seven new tariff notices” due within 48 hours; full details pending.
Market Implications:
Commodities:
Copper surges on supply fears.
Broader metals complex may follow; watch aluminum and lithium.
Equities:
Defensive sectors (staples, utilities) lag.
Industrial, energy, materials sectors likely to outperform in the near term.
Currencies:
EM FX under pressure (notably Malaysia, Indonesia).
USD strength likely in short term, but longer-term volatility expected.
Fixed Income:
Uncertainty may drive safe-haven demand (e.g., Treasuries).
Credit spreads for EM corporates could widen.
Investment Outlook
| Asset Class | Near-Term View | Rationale |
|---|---|---|
| US Copper Miners | Bullish | Tariff shield + rising prices |
| EM Exporters | Bearish | Supply chain disruption, tariff escalation risk |
| US Pharma & Biotech | Neutral to Bearish | Input cost risks + regulatory uncertainty |
| US Equities (Large Cap) | Neutral | Resilient so far, but earnings season critical |
| Safe-Haven Assets | Bullish | Global uncertainty supports gold, Treasuries |
Bottom Line:
Trump’s tariff acceleration is no longer a bluff, but a central policy lever with tangible market impact. Investors should prepare for a more volatile macro environment, repricing of global trade dependencies, and potential rotation into domestic-oriented sectors and US supply chain players. Key to watch: tariff implementation timeline, trade retaliation moves, and upcoming Fed minutes for monetary policy clues.
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