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...
Fresh Tariff Wave Announced
US President Donald Trump announced new duties on imported wood and furniture, citing national security concerns. Effective Oct 14, tariffs will be set at 10% on timber and lumber and 25% on kitchen cabinets, bathroom vanities, and upholstered furniture. The duties fall under Section 232 of the Trade Act of 1974, the same mechanism used for steel and aluminum tariffs.
Higher Duties in 2026
The proclamation warns of steeper rates from Jan 1, 2026, with tariffs on upholstered wooden products rising to 30%, and kitchen cabinets and vanities surging to 50% for countries without tariff-reduction agreements with the US.
National Security Justification
Trump argued that heavy reliance on imports threatens the domestic wood industry, which is critical to defense infrastructure and supply chains. Wood products are used in housing, storage, transportation of munitions, and even in missile defense systems.
Impact on Key Trade Partners
The measures will hit Canada, America’s top softwood lumber supplier, hardest. Canadian producers already face a combined 35% in anti-dumping and subsidy duties, prompting Ottawa to pledge C$1.2 billion (US$870 million) in aid to its lumber sector. Mexico and Vietnam, which expanded exports after tariffs on Chinese furniture were imposed in 2018, also stand to be impacted.
Tariff Caps for Allies
Some relief is offered to select partners: imports from the UK will face a maximum 10% tariff, while the EU and Japanwill be capped at 15%, reflecting existing framework agreements. However, no clarity was provided on Trump’s July deal with Vietnam, which had suggested a 20% tariff rate.
Business Backlash
The US Chamber of Commerce criticized the move, arguing that lumber and wood products pose no national security risk. It warned the tariffs would raise costs for homebuilding and construction, erode competitiveness of US paper exports, and cut incomes in affected communities.
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