A 15% uniform US tariff announced by President Donald Trump is set to benefit various Asia-Pacific economies that previously faced higher country-specific levies, as per a report by Moody’s Analytics. Japan, South Korea, and Taiwan, where tariffs are already close to 15%, are expected to see limited impact, while China and much of Southeast Asia stand to gain from the new tariffs.
The report also highlighted uncertainties surrounding recent trade deals with India and Indonesia. Key details, such as India’s timeline to reduce Russian oil purchases and Indonesia’s volume of tariff-free textile exports, remain unresolved. India has postponed sending a delegation to Washington in light of these uncertainties.
According to the ratings agency, a recent US Supreme Court ruling against country-specific tariffs has weakened Washington’s bargaining power in trade negotiations. This development casts a shadow over an upcoming crucial meeting between President Trump and Chinese President Xi Jinping, scheduled to take place in a little over a month.
The agency anticipates that Trump may explore alternative legal avenues to increase tariffs, potentially returning them to their previous levels. While some governments might delay ratifying trade deals with the US, they are unlikely to completely withdraw for fear of facing harsher tariffs, the agency noted.
