SINGAPORE (Nov 10): The uncertainties surrounding the future of the US economy and political outlook following Trump’s victory have cast a long shadow over emerging markets, with the perception that China will be the most vulnerable if he follows through with this 45% tariff proposal for imports from the country.

Although HSBC believes that it might not be all doom and gloom for China, “we, however, would like to point out that aggressive lose-lose policy like this could be blocked or toned down by the US Congress,” says Steven Sun, head of China Equity Strategy, HSBC.

“The Silent Majority that just elected Trump are probably not prepared to pay a substantially higher bill for goods imported from China and China isn’t short of measures for retaliation too,” he adds.

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