Trump's Return Will Change Asia's Trade Game
Date
11/7/2024 9:08:39 AM
(MENAFN- Asia Times)
Donald Trump's election win is creating new economic dynamics for Asia, bringing both uncertainty and strategic opportunities.
Trump's policies, historically known for prioritizing direct American benefits, are already raising concerns across Asian markets, where trade, investment and geopolitical stability could all be adversely affected.
Trump's re-election is likely to signal a return to heightened trade tensions, especially with China. His previous administration set a precedent for imposing extensive tariffs on Chinese goods, citing trade imbalances and intellectual property concerns.
The levies, which escalated broadly into a trade war, disrupted global supply chains and created instability in industries heavily reliant on US-China trade.
It's expected that Trump will revisit or intensify this approach. On the campaign trail, the businessman-cum-politician frequently said he would impose 60% tariffs on all Chinese goods and 20% on all other nations' imports.
If fully implemented, this poses risks not only to China but to other Asian nations intertwined in its supply chains.
For China, a renewed trade war would add to the economic challenges it already faces from a lingering property crisis and cooling domestic economy that has raised questions about whether it will be able to hit its 5% GDP growth target.
The previous Trump administration's tariffs pressured China to reevaluate its trade strategies, pushing it to seek deeper regional partnerships.
If these tariffs are expanded or more restrictive policies are introduced, China can be expected to seek to further strengthen its trade alliances in Asia, particularly within the Regional Comprehensive Economic Partnership (RCEP) free trade bloc.
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