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...
Tariff Reduction Backdated to August
The United States has lowered tariffs on auto imports from the European Union (EU) to 15%, retroactive to Aug 1, formalizing the terms of a framework trade agreement struck earlier this summer. The Department of Commerce and the Office of the US Trade Representative published details of the tariff adjustments on Wednesday, which include reductions across a range of goods.
Boost for German Carmakers
Shares of German automakers rose in Frankfurt following the announcement. Porsche AG, which relies entirely on imports to the US and was among the hardest hit by the higher duties, gained as much as 3.8%. Volkswagen AG and Mercedes-Benz Group AG also advanced on expectations of stronger US sales momentum under the revised tariff regime.
Scope of Exemptions
The new tariff schedule includes exemptions for key sectors such as aircraft, aircraft parts, generic pharmaceuticals and ingredients, along with certain metals and ores. Most revised duties apply to EU goods shipped from Sept 1. However, relief for automobiles and auto parts was tied to reciprocal action by the EU to lower tariffs on US goods, which the bloc enacted on Aug 28.
Policy Context
Previously, EU-made vehicles faced a 25% US duty in addition to existing levies. The adjustment follows an executive order signed earlier this month by President Donald Trump, granting his administration greater flexibility to adjust tariff rates for economies engaged in trade agreements with Washington.
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