Recent US tariff adjustments have led to a fall in rates for Asian countries, and on average they remain lower than China’s. However, the relative advantage over Chinese manufacturers has diminished, and for many products – most notably electronics – it has been removed altogether. The upshot is that these tariff changes could be negative for the rest of Asia, even though their headline rates have fallen.
Taiwan’s current account surplus has continued to surge, driven by strong AI hardware exports., The rise in the surplus could leave the country exposed to US pressure to allow the currency to appreciate.
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