Peiqian Liu, Asia Economist at Fidelity International, notes a temporary US-China truce has reduced tensions. However, she highlights growing pressure on Asian economies to secure favourable terms through fragmented, bilateral deals — potentially weakening multilateral trade frameworks.
Fidelity International warns that sweeping US tariffs announced in April have exacerbated volatility in Asian markets, threatening export-driven economies across the region. Tariff rates of up to 145% on Chinese goods and baseline 10% levies on others, including Singapore, could reshape trade flows and dent global supply chains.
While the US has paused reciprocal tariffs for 90 days to allow bilateral talks, targeted hikes on sectors such as pharmaceuticals, automobiles and semiconductors remain on the table.
