While the immediate impact of higher tariffs on China will be felt in exports, the structure of global trade has shifted since Trump’s first term, Rumble adds. “China has significantly reduced its export dependency on the US, and Chinese company revenues from the US are now in the low single digits.”
US President Donald Trump’s tariffs has a negative impact on economic growth, particularly in export-oriented markets such as Thailand, South Korea and Vietnam. While negotiations and deals with the US will take place, the ease of these negotiations will vary between countries, says Stuart Rumble, head of investment directing, APAC, Fidelity International.
For instance, India may find it easier to navigate these challenges compared to China. US exports constitute a small portion of China’s overall economy, making the impact “less significant compared to a market like Vietnam, says Rumble, which faces a 46% tariff.
