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...
The Trump Administration is set to double tariffs on Indian imports to 50%, effective Aug 27, 2025, escalating trade tensions as part of its bid to pressure Moscow over the stalled Ukraine peace process.
Key Details
Tariff Implementation: Department of Homeland Security notice confirms the 50% levy applies to all Indian products entered for U.S. consumption after Aug 27, 12:01 a.m. EDT.
Policy Driver: Tariff escalation linked to India’s continued purchases of Russian oil, which Washington argues undermines sanctions pressure on Moscow.
Geopolitical Backdrop: Trump has attempted to broker a Putin–Zelenskiy meeting but acknowledged Monday it may not happen, citing Putin’s hostility toward Ukraine’s president.
Market & Economic Implications
India: Tariff shock threatens key export categories (pharmaceuticals, textiles, IT services-related hardware, auto parts). Exporters face a sudden margin squeeze and potential rerouting of supply chains.
U.S.: Importers and retailers could see higher input costs, especially in consumer goods reliant on Indian supply (e.g., apparel, generic drugs).
Energy Dimension: India maintains its intent to continue buying discounted Russian crude, underscoring a widening rift with Washington on sanctions policy.
Global Trade Risks: Trump hinted at further tariffs on other Russian oil buyers (implicitly China), raising the stakes for broader global supply chain disruptions.
Investor Lens
Short-Term: Expect pressure on Indian equities with high U.S. export exposure (pharma, textile exporters) and potential weakness in the rupee.
Medium-Term: U.S. retailers may pass on higher costs to consumers, creating inflationary stickiness that could complicate Fed policy.
Geopolitical Watch: Tariff escalation ties trade policy directly to the Ukraine conflict, meaning volatility in U.S.–India relations will be event-driven and headline-sensitive.
Bottom Line: With tariffs set to double overnight, U.S.–India trade relations face their sharpest rupture in years. Unless diplomatic breakthroughs emerge, both Indian exporters and U.S. importers will bear the brunt of this policy gambit.
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