Malaysia seeks 20% Trump tariff but resists some U.S. demands - report
Malaysia's Tariff Negotiations: The Malaysian government is negotiating to reduce the proposed 25% US tariffs to around 20%, while facing challenges regarding electric vehicle demands and foreign ownership rules.
Impact on Semiconductor Industry: Malaysian chip companies are halting investment and expansion plans due to uncertainty surrounding US tariff policies.
Trade with 70% Backtested Accuracy
Analyst Views on EWM

No data
About the author

Malaysia's Tariff Negotiations: The Malaysian government is negotiating to reduce the proposed 25% US tariffs to around 20%, while facing challenges regarding electric vehicle demands and foreign ownership rules.
Impact on Semiconductor Industry: Malaysian chip companies are halting investment and expansion plans due to uncertainty surrounding US tariff policies.
Investment Pause in Malaysian Chip Companies: Malaysian semiconductor companies are delaying investment and expansion plans due to uncertainty surrounding U.S. tariff policies, particularly hoping for continued exemptions for semiconductors beyond the August 1 deadline set by President Trump.
Potential Tariffs and Industry Impact: President Trump has warned of a possible 25% tariff on Malaysia, separate from sector-specific levies, which could affect the country's status as a hub for data center development and its attractiveness to major tech investors like Nvidia and Microsoft.
U.S. Tariffs Announcement: President Trump announced a 25% tariff on goods imported from Japan and other Asian countries starting August 1, aiming to address trade imbalances and unfair practices, which led to a significant rise in the U.S. dollar against the Japanese yen.
Market Reactions: The announcement resulted in sharp declines for country-focused ETFs, particularly those related to Japan and South Korea, as investors brace for potential retaliatory measures and further volatility in global markets.
Malaysia Tightens Semiconductor Regulations: In response to U.S. pressure, Malaysia is tightening its semiconductor regulations to prevent advanced chips from being diverted to China, particularly following a fraudulent supply case involving Nvidia chips valued at approximately $390 million.
Challenges in Enforcement: Malaysia's Trade Minister highlighted the complexities of enforcing these regulations due to the intricate global semiconductor supply chains and the involvement of multiple stakeholders, while emphasizing the need for compliance with U.S. trade laws.
Federal Reserve's Actions: The U.S. Federal Reserve implemented a half-point interest rate cut in September, which positively impacted the stock market.
Market Expectations: Following the rate cut, the stock market is now anticipating further cuts from the Fed.

Federal Reserve's Actions: The U.S. Federal Reserve implemented a half-point interest rate cut in September, which positively influenced the stock market.
Market Expectations: Following the rate cut, the stock market is now anticipating further reductions in interest rates.








