Malaysia and Taiwan are the two countries in Asia most exposed to Trump’s threatened 100% tariffs on semiconductors. However, exemptions for companies with production facilities in the US and limited US chip capacity should ease the overall impact. Singapore is the most vulnerable country to higher pharmaceutical tariffs. However, the fact that demand is price-insensitive and that tariffs are only likely to be phased in gradually means that any hit to GDP will be relatively small, at least in the near term. Meanwhile, plans to increase tariffs on India could shift investment toward lower-tariff neighbours, including Vietnam, Indonesia, and the Philippines.
How is global economic fracturing unfolding in Trump’s second term? Join our economists for in-person briefings on the macro and market risks around the breakdown in US-China relations and the reordering of the world economy. Register for events in Singapore (3rd Sept.) and Hong Kong (4th Sept.).
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