Uniform 15 Pc US Tariffs To Benefit Some Asia-Pacific Economies: Report

(MENAFN- IANS) New Delhi, Feb 24 (IANS) A uniform 15 per cent US tariff announced by US President Donald Trump would benefit several Asia‐Pacific economies that previously faced higher country‐specific levies, a report said on Tuesday.

The report from Moody's Analytics suggested limited impact on Japan, South Korea and Taiwan where tariffs already touch near 15 per cent but China and much of Southeast Asia will benefit from new tariffs.

"The court ruling also raises questions about the recent trade deals made with India and Indonesia. Key details such as the timeline for India to wind down purchases of Russian oil and the volume of tariff-free textile exports from Indonesia have yet to be finalised. India has delayed plans to send a delegation to Washington," it said.

The ratings agency said that the recent US Supreme Court ruling against country‐specific tariffs reduced Washington's leverage in trade talks.

The uncertainty will loom over a high-stakes meeting between US President Trump and Chinese President Xi Jinping which was scheduled to occur in just over a month.

"We expect Trump to find other legal routes to raise tariffs, and we wouldn't be surprised if US tariffs end up close to where they sat before Friday. Some governments may slow-walk ratification of trade deals with the US, but we think they are unlikely to quit altogether for fear of inviting more punitive tariffs," the agency said.

The agency flagged chances of compensation claims and renewed front‐loading of shipments before high tariff resumes, together creating trade uncertainty and logistical mess.

Tariffs imposed under Section 122 automatically expire after 150 days unless Congress votes to extend them. While the time limit is explicit, trade experts noted that the President could allow the measures to lapse and potentially reintroduce them by declaring a fresh balance-of-payments emergency, another recent report said.

President Trump has warned countries against backing away from trade deals, saying such action will invite higher tariffs.

-IANS

aar/pk

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