US unlikely to impose tariffs on Southeast Asian soon - Economist
The extensive supply chain integration between China and Southeast Asian economies, driven by Chinese investments in the region that connect Southeast Asia to China's production network.
KUALA LUMPUR - The United States (US) is unlikely to impose its proposed tariffs on Southeast Asian economies in the very near future, said HSBC's chief Asia economist and co-head of global research Asia, Frederic Neumann.
He reckons that its proposed tariffs on China will probably be the first step of its trade restrictions, noting that this would eventually create a niche for Southeast Asian countries to export to the US.
"So we think there's a bit of an offset there. At the same time, we also should note the complementarity between Southeast Asia and the Chinese economy,” he said during the HSBC Asian Outlook 2025, held online today.
Neumann highlighted the extensive supply chain integration between China and Southeast Asian economies, driven by Chinese investments in the region that connect Southeast Asia to China's production network.
"Having said that, there are certain sectors, of course, that are coming more under pressure, while others would benefit. But by and large, Southeast Asia remains hugely competitive,” he said. - BERNAMA
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