Spillovers from rising US-China tensions, BI and BoK to cut

US–China tensions have flared up again, with Trump’s threat of 100% tariffs on Chinese imports reinforcing the ongoing shift of US demand and production away from China. India’s position has been undermined by new US tariffs, while Southeast Asian economies – particularly Vietnam – are emerging as the main beneficiaries of trade diversion.

Meanwhile, the central banks of Korea and Indonesia are likely to cut interest rates at their upcoming meetings next week.