About 1.25% of market GDP is expected to be affected.
This chart from Schroders shows that Singapore is the third top market most affected by US tariffs on Chinese goods via supply chains. About 1.25% of its GDP is expected to be affected.
Meanwhile, about 0.1% of Singapore's market GDP could be hit as a result of Chinese tariffs on US goods via supply chains. This makes it the sixth amongst economies to be hit the hardest by the tariffs from China.
The US and China have been trading fierce rhetoric over the past two months, threatening to slap billions of dollars' worth of tariffs on each other's goods and services.
"Many economies and companies outside the US and China could be exposed to the threat because of their interconnected supply and revenue chains, potentially putting global economic growth at risk," said Craig Botham, Schroders emerging markets economist.
Headlines have focused on the damage to China in the event of any trade war, but other emerging market (EM) economies could suffer almost as much. "In some cases, governments in those other economies will lack the resources of Beijing, and will face greater domestic political pressure to act," Botham said.
Furthermore, it is apparent that tariffs on Chinese exports are much more consequential for EM than those on US exports, and that the pain is likely to be concentrated in Asian EM, he added.
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