Why is Asia reacting so strongly to US tariffs?published at 03:17 British Summer Time
Annabelle Liang
BBC News, Business reporter
Stock markets don’t like uncertainty – and many things are
still uncertain about President Trump’s tariffs.
For one, will the import taxes take effect as planned, or
will countries successfully negotiate lower rates?
There were five Asian nations in the 10 countries and
territories hit with the highest tariffs announced last week. This is a worry
for many businesses in the region, as it raises the cost of selling goods to
the US.
Qian Wang, Asia Pacific Chief Economist from the Vanguard
investment firm, said “Asia is bearing the brunt of the US tariff
hike” as it stands.
“While there could be some room for negotiation, a new
regime of higher tariffs is here to stay. This is negative to the global and
Asia economy,” she added.
There are also concerns that China’s response could ratchet
up trade tensions with America.
Beijing has already said it would introduce a 34%
tit-for-tat tariff “which makes it clear China won’t fold”, said
Vishnu Varathan, managing director at Mizuho Securities, Singapore.
“This escalates US-China trade antagonism, hobbling
hopes of defusing terse trade conditions,” Varathan added.
Image source, Getty ImagesMany goods from Asia are sold to the US
