Stocks set for another bumpy day after China refuses to drop its 34% levy in response to US president’s threats
The full implementation of US tariffs could cut developing Asia’s growth by about a third of a percentage point this year and nearly a full percentage point in 2026, the Asian Development Bank said on Wednesday.
In its Asian Development Outlook report, the ADB projected that growth in developing Asia will ease slightly to 4.9% in 2025 – the slowest pace since 2022 – and slow further to 4.7% in 2026, from 5.0% in 2024, Reuters reports.
On the flip side, stronger retaliation and further escalation could result in bigger impacts. Additionally, the size and speed of policy changes under the new US administration could reduce investment globally and in the region, while rising trade tensions and fragmentation would boost trade costs and disrupt global supply chains.