KUALA LUMPUR, Feb 23 (Bernama) -- Bursa Malaysia ended the first trading day of the week higher, maintaining its momentum from last week amid improving investor sentiment following the latest United States tariff announcements. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 5.15 points, or 0.29 per cent, to 1,757.98, compared with Friday’s close of 1,752.83. The benchmark index had opened 4.14 points higher at 1,756.97, and moved between 1,752.48 and 1,760.03 throughout the trading session. The broader market was positive, with gainers outpacing losers 584 to 520, while 537 counters remained unchanged. A total of 1,139 counters remained untraded and 24 were suspended. Turnover widened to 2.47 billion units worth RM2.65 billion compared to 2.03 billion units worth RM2.20 billion last Friday.
China said it is closely watching Washington’s next steps after the Supreme Court of the United States struck down President Donald Trump’s sweeping emergency tariffs.
In its first official response, Beijing signalled caution — and readiness.
What Happened
The US Supreme Court invalidated broad tariffs imposed under emergency powers.
However, Trump quickly moved to:
Reimpose a 15% global tariff
Launch new trade investigations
Explore alternative legal channels to maintain duties
These include:
Section 301 investigations (used previously against Chinese exports)
Section 232 investigations (national security grounds — autos, metals)
The court ruling reshaped the legal pathway — but not necessarily the protectionist direction.
China’s Response
China’s Ministry of Commerce said it is:
Conducting a comprehensive assessment of the ruling
Monitoring potential alternative US measures
Prepared to “firmly safeguard its interests”
Beijing also reiterated calls for the US to:
Drop unilateral tariffs
Avoid measures that harm global trade
Market Reaction
A key Hong Kong-listed Chinese equities index rose as much as 2.6% Monday morning.
Why?
Even with the new 15% tariff:
Bloomberg Economics estimates the average effective tariff rate may fall to ~12%
That would be the lowest since Trump’s earlier “Liberation Day” tariffs
Additionally:
A separate 10% fentanyl-related tariff affecting China was scrapped by the court
Net effect: Tariff pressure may ease slightly — at least temporarily.
What’s at Stake
Alternative legal authorities could still allow:
Fresh tariffs on Chinese goods
Duties targeting autos and metals
Renewed bilateral tensions
The uncertainty keeps:
Exporters cautious
Investors alert
Supply chains defensive
Market Takeaway
The ruling is not a full reset — it’s a legal recalibration.
Key risks ahead:
New US trade investigations
Escalatory tariff tools
Political signalling ahead of policy shifts
For now, effective tariff rates may be lower — but structural trade friction between the world’s two largest economies remains intact.
Bottom line:
The court may have struck down emergency tariffs, but the trade chessboard is still in play.
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