New Delhi: Reciprocal tariffs of US President Donald Trump are a mixed bag for Asian economies, except for China, given their opportunity to replace some Chinese exports to the US, according to the main economy of Asian Development Bank (ADB) Albert Park.
The Park, which answered the question of Mint on the outskirts of 58. The annual meeting of the ADB said that the country could stimulate the growth of domestic consumption through the support of vulnerable parts of society as well as in other ways of public expenditure.
In its April 2025 Asian Development Outlook assumed 4.9% growth for the Asian-Tichoral region in 2025 and 4.7% for next year. The multilateral agency expects India to grow in 2025-26 to 6.7% and 6.8% in FY27.
These projections reflected the world in front of reciprocal tariffs announced by the American administration on 2 April, the park explained.
In the December view of the Asian development of ADB, some scenarios based on the announcement of the proposed tariffs during Trump’s election campaign. The plan was then deposited up to 65% of tariffs to China and 10% for the rest of the world.
In this ADB analysis, China expected China to be somewhat modest, but finally the announced tariffs are much higher.
“Therefore, the impact would probably be greater than estimated in this report,” the park said. “But for other countries in the region, the results are quite mixed because some countries may benefit from replacing the reduction of Chinese exports to the US. This happened during the first Trump administration, when Vietnam benefited from their exports.”
However, companies supplied to China will be injured if the decrease in the export of the country, he added.
“The second thing is the level of uncertainty we see today. There’s so much uncertainty. I think it’s really difficult for businesses to make plans for new investments. We see a slight decline in production in many countries in the region partly because of that.
“Support vulnerable”
The Adb 2025 growth projection of 4.9% for the Asian-Tichorate region is based on a strong domestic demand throughout the region, which serves as an counterweight for external demand shocks, Park said.
“If you cannot get a growth by serving in overseas demand, then domestic demand is another opportunity,” Park explained. “How are you doing? I think it will depend on every economy. Central and fiscal policy is one of the main macroeconomic levers. But due to the current financial volatility, central banks must look very careful about many factors and may not be so easy to say,” Oh, let’s reduce our interest rate “.”
The park suggested using measures of fiscal policy to increase domestic demand.
“You could use fiscal policy to strengthen domestic demand. You could definitely support workers who are vulnerable, who are injured by the current environment, as a way of protecting vulnerable groups, and also to maintain greater demand in the economy,” Park said.
(Tagstotranslate) USA tariffs
