Our Asia Chart Pack has been updated with the latest data and our analysis of recent developments.
Most countries in Asia will face tariffs of 15–25% on their exports to the US, and although these are higher than we initially assumed, the impact should be manageable. This is because countries in Asia will not lose competitiveness against other non-US producers, while the region should also continue to benefit from trade diversion as US firms shift away from China. Looking beyond the trade war, with growth set to struggle over the coming months and inflation low, further interest rate cuts are likely across much of the region. Taiwan and India, where rates will probably stay on hold through year-end, are the exceptions.
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