KUALA LUMPUR, March 12 (Bernama) -- Bursa Malaysia’s benchmark index reversed earlier losses to end at its intraday high on Thursday, staging a late rebound during the final hour of trading. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.23 points to 1,711.01 from yesterday’s close of 1,708.78. The market bellwether opened 8.09 points lower at 1,700.69, and slipped to its day’s low of 1,694.80 during the mid-morning session before gaining momentum in the afternoon trading toward the close. However, market breadth was negative, with losers leading gainers 538 to 529. A total of 525 counters were unchanged, 1,075 untraded, and 17 suspended. Turnover climbed to 3.01 billion units worth RM3.53 billion from Wednesday’s 2.70 billion units worth RM2.78 billion.
Trump Revives Tariff War: US Launches Trade Probes Targeting China, EU — Malaysia & Singapore Included
The US has kicked off sweeping trade investigations that could pave the way for new tariffs, putting China, the European Union — and key Southeast Asian economies including Malaysia and Singapore — directly in focus.
US Launches Section 301 Trade Investigations
Office of the United States Trade Representative (USTR), led by Jamieson Greer, announced probes under Section 301 of the Trade Act, targeting alleged excess manufacturing capacity.
Major economies under investigation include:
China
European Union
Japan
South Korea
Taiwan
India
Mexico
Southeast Asia is also in the crosshairs:
Malaysia
Singapore
Vietnam
Thailand
Indonesia
Cambodia
Bangladesh
Key Point: The investigations are a “Plan B” after the US Supreme Court struck down Trump’s previous global tariffs.
What’s Being Targeted?
The USTR alleges that trading partners have built production capacity beyond global demand, distorting markets.
Industries flagged include:
Aluminium
Automobiles
Batteries
Electronics
Machinery
Semiconductors
Solar modules
Steel
Robotics
Ships
China’s trade surplus and overseas expansion by firms such as BYD Co. were specifically cited.
The European Union — especially Germany and Ireland — was singled out for chemicals, machinery and vehicles. Taiwan was flagged over semiconductors and electronics.
Malaysia & Singapore: What It Means
For Malaysia and Singapore, inclusion in the probe signals:
Heightened trade scrutiny
Potential tariffs targeting export-heavy sectors
Rising uncertainty for electronics and semiconductor supply chains
Malaysia, a major semiconductor hub, could face risks if investigations expand into chip-related supply chains.
Key Point: Even if tariffs are months away, trade uncertainty could weigh on investment flows and export outlook.
Timeline & Next Steps
Public comment period begins immediately
Public hearing expected around May 5
USTR may propose corrective measures, including tariffs
Administration aims to conclude investigations before temporary levies expire
President Donald Trump has already imposed temporary 10% tariffs under Section 122 and signalled an increase to 15%, though not yet implemented.
Broader Trade Tensions Reignite
The move risks:
Escalating tensions with China ahead of a planned Trump–Xi summit
Complicating US-Mexico trade negotiations
Adding friction to already fragile global supply chains
China rejected the “overcapacity” narrative, calling it a pretext for political manipulation.
Market Implications
Markets now face a dual shock:
Energy disruption from the Iran war
Renewed global trade tensions
This combination raises risks of:
Slower global trade growth
Export headwinds in Asia
Policy uncertainty for central banks
Increased volatility in equities and currencies
Bottom Line: The US is rebuilding its tariff wall, and Malaysia and Singapore are now part of the trade probe landscape — adding another layer of uncertainty to an already fragile global market environment.
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