US Tariffs Spark Asian Collaboration and Digital Alliances
The US's tariff policies are causing ripples in Asia, prompting calls for enhanced regional collaboration and digital alliances. While Asia remains resilient, the US's 'divide-and-rule' tactics and high tariffs are impacting growth and investor confidence.
The US's tariffs are hitting Vietnam hard, potentially cutting growth by 1%. Most Vietnamese exports face a 20% tariff, with some goods classified as non-Vietnamese origin bearing a 40% tariff. This is weakening investor confidence in Vietnam's business climate.
Singapore, despite its long-standing partnership with the US, is also feeling the heat with a 10% US tariff. This has been described as a 'slap' by observers.
Regional leaders are advising to reduce reliance on the US market by strengthening collaboration through agreements like RCEP and CPTPP, as well as individual FTAs. However, the US's country-by-country tariff negotiations risk fracturing regional solidarity.
In the digital economy, Singapore and Korea have forged an alliance, focusing on data flows, digital payments, and AI standards. Similar initiatives are emerging in the ASEAN region. This is crucial as Asia looks to navigate global protectionism and strengthen cooperation in emerging technology sectors.
Asia's resilience is being tested by US tariffs, but the region is responding with enhanced collaboration and digital alliances. While the US's 'divide-and-rule' tactics pose challenges, Asia is determined to navigate these trade frictions and foster growth.
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