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 ...
Broad-Based Tariff Surge Effective in 7 Days
US President Donald Trump signed an executive order imposing steep new tariffs on 69 trading partners, with rates ranging from 10% to 50%, effective Aug 7. The move comes ahead of the long-anticipated tariff deadline and signals an aggressive stance on trade realignment.
Canada: 35% duty on fentanyl-linked goods (up from 25%)
Brazil: 50% on a broad range of products
India: 25% amid stalled agriculture talks
Taiwan: 20%
Switzerland: 39%
Other nations: 10%-41%, depending on trade balances and security considerations
Canada Faces the Heaviest Blow Among Allies
Canada, Washington’s second-largest trading partner, received the harshest hike outside of Brazil. The White House cited Ottawa’s “failure to cooperate” on fentanyl-related enforcement.
Mexico, in contrast, secured a 90-day reprieve after last-minute talks, avoiding a planned 30% duty on most goods compliant with USMCA rules of origin.
Roughly 85% of Mexican exports meet USMCA standards, shielding them from the harshest tariffs.
Emerging Asia Under Pressure
Southeast Asia remains a key focus:
Vietnam: 20%
Indonesia & Philippines: 19%
Goods with Chinese content risk even higher unspecified duties, highlighting Washington’s continued emphasis on supply-chain decoupling.
India Negotiations Stall
Talks with India broke down over agricultural market access. The result:
25% tariff slapped on Indian goods
Threat of an additional penalty over Russian oil purchases
Indian rupee slumped to multi-month lows on tariff fears and policy uncertainty.
Market & Inflation Impact
Consumer Goods Spike: Latest Commerce Department data shows US household goods prices jumping 1.3% in June, the largest increase since March 2022. Tariffs are expected to add further upward pressure.
FX Volatility: The Canadian dollar and Indian rupee are under pressure; Southeast Asian currencies may see increased selling as trade flows adjust.
Equities: Industrials, autos, and agriculture sectors likely to experience earnings downgrades if tariffs persist into 4Q.
Legal & Political Overhang
The Court of International Trade has questioned Trump’s use of emergency powers under the 1977 IEEPA to justify “reciprocal” tariffs.
Federal appeals judges signaled further skepticism, injecting legal uncertainty into the enforcement timeline.
Investor Takeaways
Risk-off sentiment likely to dominate near term as global supply chains recalibrate.
Commodities: Watch base metals and agricultural futures for pricing shocks tied to cross-border supply disruptions.
Portfolio Hedge: Defensive positioning in USD assets could outperform if trade tensions escalate further.
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