Asia-Pacific Set for Trade Storm: S&P Warns of Tariff Fallout

S&P Global Ratings highlights the vulnerability of Asia-Pacific economies, particularly India, South Korea, and Thailand, to potential US trade tariffs. While Vietnam, Taiwan, and South Korea face heightened tariff exposure, India and Japan benefit from domestically focused economies. The uncertainty surrounding US trade policies poses significant risks to these regions.

Several Asia-Pacific economies may face substantial economic impacts as a result of potential higher tariffs introduced by the Trump administration, according to a report by S&P Global Ratings.

The report, 'Asia-Pacific Economies Likely To Be Hit By US Trade Tariffs,' identifies nations such as Vietnam, Taiwan, Thailand, and South Korea as having substantial economic exposure to the US, making them particularly vulnerable to tariffs.

With the US administration enacting additional tariffs on imports from China, and 25 percent on steel and aluminum, the uncertainty surrounding further trade policies poses a significant threat to economic activity in the region, with India, South Korea, and Thailand facing the highest risk based on effective tariff criteria.