Escalating U.S. tariffs are casting a shadow over Asia's export-driven economies, with new research from UBS predicting a potential 0.5% to 1% reduction in regional GDP growth. The report highlights how nations like Japan, South Korea, Thailand, Singapore, and Malaysia — all heavily reliant on American markets — face acute pressure as trade barriers reshape global commerce.
"The uncertainty itself is already damaging," UBS Asia-Pacific economist Philip Wyatt told CGTN, noting that businesses are delaying critical supply chain decisions amid shifting trade policies. While final tariff rates remain debated, analysts warn the chilling effect could outlast any eventual political resolutions.
Asia's economic slowdown comes as manufacturers grapple with thinning profit margins and redirected orders. Observers suggest this trend may accelerate regional efforts to diversify trade partnerships and develop domestic consumer markets to reduce reliance on Western demand.
