Lost on what Trump’s tariff on imports means and why everyone is worried about it? Not to worry, we’ll catch you up to speed on what’s going on exactly, how this could affect you, and what you might be able to do about it, all in one go!
1. First things first: What’s this US tariff thing eh?
On 2 April 2025, US President Donald Trump slapped tariffs (read: taxes) on goods from China and other countries, imposing a 10% baseline tariff on all imports to the country AND higher duties on many other nations, including Malaysia.
Malaysia kena 24% in reciprocal tariff, which was reportedly due to the 47% tariff we charge to the US (including currency manipulation and trade barriers).
This bomb of an announcement caused another Black Monday on 7 April, with global stock markets plummeting and Malaysia’s stock index dropping by 4.01%.
Though we rebounded briefly when Trump consequently announced a pause on the tariffs for 90 days (implementing a 10% base tariff for now), China escalated the trade war by retaliating against the US with 34% reciprocal tariffs on all US imports.
Most recently, on 15 April, the US responded by increasing the tariff on Chinese imports once again, this time as high as 245%! However, this mainly applies to medical essentials like China-made syringes and needles, with lower rates on imports like lithium-ion batteries (173%), tuna (170%), wool sweaters (169%), plastic plates (159%), EVs (148%), and toys (145%).
2. How does this affect Malaysians?
As a trade-reliant economy (especially in tech), Malaysia could get caught in the crossfire again with Trump’s world-changing decision, either as collateral damage or a potential alternative supply chain hub. Either way, we’ll undoubtedly feel its effects, like:
- Our export business is shaken up
Malaysia exports electronics, palm oil, rubber gloves — you name it. With the increased US tariffs disrupting global trade, there will be a surge in costs for Malaysian export companies, and they’ll either bear it or pass the cost to customers, causing goods to be more expensive.
- Jobs may be on the line
When export-heavy companies get hit badly (and there are plenty in the country) and choose to bear the cost, employees may be the first ones to bear the brunt, having to worry about layoffs or salary cuts.
- Stock market drama
Remember that mini heart attack the Bursa had when Trump first started the China–US trade war? Basically, global markets aren’t fans of uncertainty, which leads to a volatile market. Even Malaysian investors are feeling the heat despite never trading in US stocks, with traditional long-term investment strategies being upturned.
3. Should Malaysians Worry?
While the drama in the US-China arena can cause short-term damage, it also creates new windows of opportunity, especially in the trading sector. If you can’t stop the storm, learn to surf.
Turning crisis into opportunity with Structured Warrants
With trading more accessible than ever, one trading tool that Malaysians can use to take advantage of the volatile market is Structured Warrants (SWs), which let you profit from the movement of a stock or index without actually owning it.
Like any trading instrument, Structured Warrants have their pros and cons as well:
✅ Pros
- High Potential Returns: Small changes in the underlying stock price could result in big percentage gains.
- Minimal Capital: Instead of forking out RM1,000s for standard stocks, SWs grant you access to the same stocks for a fraction of the cost.
- Limited Losses: Even if the market goes completely sideways (or the stock tanks), your losses are capped, so you won’t lose more than what you paid.
- Flexibility to Profit in Either Direction: Buy a Call Warrant if you think the stock will go up, or a Put Warrant if it’ll drop. You can adapt your strategy however you like.
❌ Cons
- Finite Life Span = Time Decay: SWs have expiry dates, which means they’ll naturally lose value, even if the underlying stock stays flat.
- Liquidity Can Be Tricky: You depend on market makers to provide liquidity. If they’re not active, you might struggle to buy or sell at a fair price. That’s like wanting to leave a party but not finding your shoes.
If you are an experienced investor who wants high-leverage, short-term trading opportunities with defined risks, then Structured Warrants is worth your consideration! On the other hand, if you prefer buy-and-hold strategies for the long run, then you might want to sit this one out, especially when SWs need active monitoring to profit.
Trade with someone you trust
When you’re dealing with fast-paced financial instruments like Structured Warrants, who you trade with matters, especially when they’re only issued by third parties like brokerage firms. This is where CLSA comes in.
CLSA, the wholly owned subsidiary and overseas business platform of CITIC Securities, is a global brokerage and investment group that’s been in Malaysia since 2025, and it recently started issuing Structured Warrants as its latest product.
As an APAC-focused global firm spanning 13 countries across Asia, Australia, Europe, and the Americas, CLSA is a one-stop trading shop that provides useful insights and easy access to key info like pricing and announcements to help you make informed decisions, especially important when trading Structured Warrants.
Courtesy of its state-of-the-art market-making capabilities, CLSA lets you trade with minimal disruptions, which will be important when you have to trade your Structured Warrants fast before they expire.
With a wealth of experience as a market maker and warrant issuer (even spanning complex markets like Hong Kong’s dual-currency (HKD-RMB) warrant trading), CLSA is the ideal partner when it comes to trading Structured Warrants and beyond — after all, it has been consistently voted one of the best equity brokerage firms across the APAC region.
So if you want a trading partner that:
- Knows their stuff, especially in Structured Warrants.
- Has a strong local AND global presence.
- Provides real support, not just a trading button.
CLSA checks all the boxes, regardless of whether you’re an active trader hunting short-term gains or a savvy investor adding more tools to your kit!
Have a look at CLSA’s Structured Warrants listing on Bursa Malaysia.
