Malaysian Stocks Rebounds After Trump Hits Pause On Trade War

Malaysian markets just rode a rollercoaster – from crashing through the basement to shooting up 4.55% faster than you can say “trade war.”

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Malaysian stocks shot through the roof this morning (10 April), scoring their biggest win in months after United States President Donald Trump unexpectedly played nice in his global trade showdown.

The market jumped a massive 4.55% – that’s serious money moving – as investors rejoiced over his surprise 90-day tariff timeout.

They have been in limbo from hell ever since Trump dropped his tariff bomb last week.

The market lost its lunch on Wednesday (9 April), with the FBM KLCI crashing through the 1,400 floor—a psychological level that breaking below can signal panic among investors and exacerbate selling pressure.

Trump’s giving 75 countries, including Malaysia, a sweet deal by slashing tariffs to just 10%, a significant break from the 24% tax bomb that was about to drop.

Southeast Asian neighbours like Singapore and Thailand also get the same VIP treatment.

Trump’s Trade Game: Malaysia Gets to Party, China Gets to Pay

This 90-day reprieve feels like finding an extra paycheck under the mattress for Malaysian businesses sweating over export costs.

The big question now: Will this market party last until July, or is this just the calm before another trade storm?

The TRUMP tariffs are actually fair? AND could be positive for us? #personalfinance #investments #fyp #dividends #investing #malaysia #et #stocks #assets #equitiestracker pic.twitter.com/yvrsUOiZi3
— alvinequities (@alvinequities) April 10, 2025

But while most of Asia’s getting a breather, China’s getting hammered with a brutal 125% tariff.

Trump’s basically saying “play nice or pay the price,” and China’s definitely paying – though you wouldn’t know it from their market’s iron stomach.

Market watchers are scratching their heads: how is the dragon dancing through a 125% tariff while Malaysia’s been stumbling over a smaller hurdle?

Malaysia’s Trade Game: Playing It Cool While Trump Deals the Cards

Instead of throwing a fit over that harsh 24% tariff threat, Malaysia is sliding into the negotiating chair with a poker face that’d make Vegas proud.

The timing couldn’t be better. Trump’s 90-day tariff timeout gives Malaysia and 74 other countries that choose diplomacy over drama.

While other countries are still complaining to the World Trade Organisation (WTO), Malaysia is taking the direct route.

They’re basically saying, “Let’s talk business”-no drama, no X wars – just straight-up business sense.

So far, Malaysia might just walk away with a better deal than we had before.

Under Trump's so-called "reciprocal" tariff regime, he claimed Malaysia has a 47% rate on the US, thus justifying their revenge of 24%.

So I looked into the granular data, and guess what?

Malaysia's actual effective tariff rate on the US is……

1.4%

🧵of how I found this https://t.co/ZfKA0GCSVe pic.twitter.com/DvmB9SBRcM
— Thevesh (@Thevesh) April 7, 2025