Asia-Pacific: Growth to decline if President Trump implements reciprocal tariffs
New Delhi: Major Asia-Pacific economies, like China, India and Japan, will witness growth decline by 0.2 percent to 0.4 percent over the next two to three years due to implementation of the reciprocal tariff that US President Donald Trump announced on April 2.
According to Standard & Poor, the impact of this tariff regime could slow down the economy, global trade, and confidence. The region’s economy has a heavy dependence on China. Hence it could cause a major impact on small-sized manufacturing-based economies.
“Should the tariffs announced on April 2, 2025, resume for economies ex-China, the geopolitical and economic fallout will be deep,” S&P Global Ratings Asia-Pacific Head of Research Eunice Tan said, the media reported.
For India, S&P had in March projected a 6.5 percent and 6.8 percent growth for 2025 and 2026, respectively. If the reciprocal tariffs are implemented, S&P estimates the growth to fall to 6.3 percent and 6.5 percent, respectively.
These tariffs will majorly affect the Asian economies like Thailand, Japan, and Vietnam, directly affecting their growth
