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 ...
Key Takeaways:
Trump urged EU officials to impose tariffs of up to 100% on China and India, key buyers of Russian oil.
The US signaled willingness to impose matching tariffs if the EU complies.
Move would mark a strategic shift for the EU, which has leaned on sanctions rather than tariffs.
Trump’s Request to the EU
US President Donald Trump asked European Union envoys on Tuesday to implement sweeping tariffs on China and India as part of a coordinated strategy to pressure Russian President Vladimir Putin. According to a US official and an EU diplomat, Trump suggested tariffs as high as 100%, citing the two nations’ critical role in sustaining Moscow’s oil-driven economy.
The proposal was made during a conference call with EU sanctions envoy David O’Sullivan and other officials. A diplomat noted the US offered to mirror any European action: “They are basically saying: We will do this but you need to do it with us.”
Strategic Implications
If enacted, the tariffs would mark a major policy shift for the EU, which has so far prioritized sanctions over tariffs in its efforts to isolate Russia. Trump has repeatedly floated tariff threats against both countries but has refrained from imposing the most severe measures.
Over the summer, he raised tariffs on India by 25 percentage points, citing its economic ties to Moscow. At the same time, he has criticized Europe’s slow pace in cutting energy dependence, noting Russia still accounted for about 19% of EU gas imports in 2024.
Balancing Pressure and Diplomacy
Later on Tuesday, Trump appeared to strike a softer tone toward India, suggesting the US was working with New Delhi to resolve trade barriers. In a social media post, he said he looked forward to speaking with Indian Prime Minister Narendra Modi “in the coming weeks.”
The dual messaging reflects Trump’s strategy of applying tariff threats as leverage, while keeping the door open for trade deals with key partners.
Bottom Line
Trump’s push for coordinated EU tariffs against China and India underscores a more aggressive attempt to cut off Russia’s revenue streams amid the war in Ukraine. However, the proposal risks straining US and EU relations with Asia’s two largest emerging economies and could complicate parallel trade negotiations.
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