What do the tariff letters mean for APAC and the China+1 strategy?

Fresh US tariff announcements targeted multiple Asian economies with rates of 20%-40%. These tariff letters, which included penalties for transshipments, or trade rerouted to evade high tariffs, avoided a direct escalation with China but effectively narrowed its tariff differential.

Our baseline tariff assumptions continue to expect that Asian governments are able to speed up negotiations ahead of the deadline to achieve lower tariffs, although risks are clearly skewed to the upside, particularly as tariffs are proving to be a key source of revenue generation for a fiscally-constrained US administration.

Download our latest report to uncover more insights on:

• What are the near-term implications of additional levies on transshipped goods for ASEAN countries? Which countries will face the biggest challenges?
• How will the new tariff announcement influence China+1 manufacturing strategy?
• Should the new tariffs take effect, how would they influence the economic and inflation outlook?