Taiwan, Malaysia, Singapore, Korea, Hong Kong, Thailand, Philippines, and Japan will be amongst the most affected by US tariffs on Chinese goods via supply chains.
Asia's emerging markets (EM) could suffer almost as much as China in the light of the Asian giant’s trade war with the US, Schroders emerging markets economist Craig Botham said.
Botham thinks that whilst some economies could be less exposed to the first round of tariffs, EMs in Asia could face even greater domestic political pressure than Beijing if they lack resources from China.
“The immediate damage is focused chiefly on EM Asia, whilst relatively closed economies such as Brazil and India should be more insulated than other economies in the event of a more global trade war,” Botham said.
According to data from the Organisation for Economic Co-operation and Development(OECD), The Economist Group, and Schroders, Singapore and Taiwan’s will be the most affected Asian countries by Chinese tariffs on US goods through supply chains.
Meanwhile, Taiwan, Malaysia, Singapore, Korea, Hong Kong, Thailand, Philippines, and Japan will be amongst the most affected by US tariffs on Chinese goods via supply chains
Despite this, the economist said that there could be winners from any tariffs.
Botham believes that China’s tariffs on US goods could make developed market economies target to replace the US as a major supplier of higher value-added commodities, whilst other EM economies could eye to substitute for China as a provider of raw materials and components.
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