The intensifying tariff battle between the United States and China has raised concerns that businesses in Asia, particularly those integrated into global supply chains, will face rising costs and economic uncertainty as they navigate the shifting trade landscape.
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Beijing on Tuesday unveiled its latest round of retaliatory tariffs after US President Donald Trump’s administration imposed a 10 per cent levy on Chinese imports last week.
They include a 15 per cent tariff on US coal and liquefied natural gas, and a 10 per cent tariff on crude oil, agricultural machinery and certain automobiles, effective Monday.
Trump had also threatened to impose 25 per cent tariffs against Canada and Mexico but agreed to pause after both nations pledged to bolster border controls in line with his demands.
The moves have intensified uncertainty worldwide and raised the possibility that the US Federal Reserve – which serves as a benchmark for Asian central banks – will slow monetary easing to curb inflation.
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Analysts said the knock-on effects of such a shift could be particularly pronounced in Southeast Asia.