By Reuters and published by Yahoo!Finance and Naewna newspaper
AS US President Donald Trump’s new trade tariffs on China, Mexico and Canada kick off, sparking another trade war, countries in Asia’s complex and integrated global supply chain are in the crosshairs.
The following graphics illustrate Asia’s exposure to US tariffs on China and the escalating trade war, which is set to impact exports and growth in the region.
Vietnam, Taiwan, and Thailand are the most exposed to increased US tariffs due to their high export-to-GDP ratios with the United States.
With Trump proposing tariffs targeting sectors such as semiconductors, pharmaceuticals, steel and aluminium, Nomura expects over a quarter of exports from South Korea, Japan, Malaysia, the Philippines and Taiwan could be affected.
Malaysia, South Korea, and Thailand are more tied to North American supply chains, making them vulnerable to US tariffs on Canada and Mexico.
In Malaysia, 0.59% of GDP is tied to trade that adds value to Canadian and Mexican exports to the US, the highest share among Asian economies, data shows.
Taiwan and Vietnam are more exposed to China’s exports to the US, meaning they could be heavily impacted by US-China trade tensions.
While Trump’s tariffs target the three countries to address trade imbalances, nations with the highest trade surpluses with the US are also seen as at risk of further tariffs. In Asia, China, Vietnam, Japan, and Taiwan have the largest trade surpluses with the US, according to a recent US Treasury report.
Some Asian economies also face risks from reciprocal tariffs, as President Trump directs plans for counter-tariffs on countries that impose higher tariffs on US imports than those the US levies.
“If the current US administration is deciding on reciprocal tariffs based on the effective tariff differential alone, it is likely that, within Asia, India, Thailand, and South Korea would be most at risk and could face additional tariffs of around 5 ppts,” Oxford Economics said in a report.
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Top: A heavily loaded container ship. Photo: Ian Taylor on Unsplash
Above: US President Trump makes an announcement about investment, at the White House. Photo: Reuters and published by Yahoo!Finance
Front Page: US president Donald Trump speaks during a “Fighting Anti-Semitism in America Event” with Dr Miriam Adelson and Jewish leaders in Washington, US, on Sep. 19, 2024. Photo: Reuters/Piroschka van de Wouw and published by CNA
(Reporting By Patturaja Murugaboopathy; Editing by Vidya Ranganathan and Philippa Fletcher)
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