Several Asia-Pacific economies, including India, South Korea, and Thailand, could face significant economic challenges due to potential US tariff hikes, according to a recent report by S&P Global Ratings. The report highlights that these nations are among the most vulnerable to trade retaliation under the current US administration.
S&P’s analysis, titled Asia-Pacific Economies Likely To Be Hit By US Trade Tariffs, underscores that countries like Vietnam, Taiwan, Thailand, and South Korea have substantial economic exposure to the US. This makes them particularly susceptible to the adverse effects of tariffs, which could disrupt trade flows and economic growth.
While India and Japan have more domestically oriented economies, providing some buffer against external trade shocks, they are not entirely immune. India, in particular, has been navigating a complex trade relationship with the US, with ongoing negotiations to address tariff-related concerns.
The report comes amid rising global trade tensions and a shift in US trade policies, which have increasingly focused on protecting domestic industries. S&P warns that if tariffs are imposed, they could have a cascading effect on the region’s economies, impacting exports, supply chains, and overall economic stability.
As Asia-Pacific nations brace for potential trade disruptions, policymakers are urged to explore diversification strategies and strengthen regional trade partnerships to mitigate risks.
Source: Web Team, C6N
