KUALA LUMPUR, April 30 (Bernama) -- Last-minute buying lifted Bursa Malaysia’s benchmark index, reversing earlier losses as higher oil prices boosted sentiment for energy- and chemical-related counters. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional markets remained under pressure following negative cues from Wall Street, compounded by surging oil prices, mixed earnings, and a cautious US Federal Reserve stance. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 1.60 points, or 0.09 per cent, to 1,722.02 from Wednesday’s close of 1,720.42. The benchmark index opened marginally lower at 1,720.23 and moved between a low of 1,712.14 and a high of 1,722.03 throughout the day. Market breadth, however, was negative, with losers trouncing gainers 816 to 360. A total of 546 counters were unchanged, 950 were untraded, and 77 were suspended. Turnover declined to 2.91 billion un...
The UK, which had touted its preferential trade position with Washington, may now face the largest relative setbackafter President Donald Trump moved to reset global tariffs following a ruling by the Supreme Court of the United States.
From Advantage to Disadvantage
Before the ruling:
The UK enjoyed a 10% reciprocal tariff rate
Lower than many other trading partners
Provided a competitive edge for British exporters
Now:
Trump plans to impose a flat 15% tariff globally
That erases Britain’s relative advantage
Makes UK exports less competitive
According to Global Trade Alert, the UK could be the biggest loser, followed by Italy and Singapore. Meanwhile, Brazil, China and India may benefit as their effective tariff rates decline under the new structure.
Potential Economic Impact
The British Chambers of Commerce estimates:
Up to £3 billion (US$4 billion) in additional export costs
Around 40,000 UK businesses affected
Sectors potentially hit:
Scotch whisky
Consumer goods
Toys and other manufactured exports
However, previously agreed exemptions on:
Steel
Pharmaceuticals
Automotives
are expected to remain in place — softening the blow for key industries.
Political Scramble in London
Prime Minister Keir Starmer’s government is now seeking clarity — and possibly an exemption — from Washington.
UK officials say they are engaging “at the highest levels,” but uncertainty remains:
The 15% tariff falls under Section 122 of the 1974 Trade Act
It can only remain for 150 days unless Congress extends it
That temporary window complicates negotiations.
Strategic Friction
The tariff tension comes amid broader strains in the so-called “special relationship,” including:
Disagreements over the Chagos Islands handover to Mauritius
US strategic concerns over Diego Garcia
Trade-policy recalibration after the court ruling
Additionally, US officials may now focus on replacing lost tariff revenue — making UK-specific concessions harder to secure.
Market Takeaway
The shift to a flat 15% global tariff means:
The UK loses its previous pricing advantage
Competitive dynamics with the EU reset
Export margins face renewed pressure
While sector exemptions remain intact, uncertainty over final tariff treatment keeps UK businesses in wait-and-see mode.
Bottom Line
Britain spent months securing preferential treatment — but the legal reset in Washington may have wiped out that edge.
Until formal clarity emerges from the US administration,
UK exporters face higher costs and elevated trade risk.
Comments
Post a Comment