US Tariffs has pushed China to increase its exports to South-East Asia with Indonesia, Singapore, Thailand, the Philippines, Vietnam and Malaysia being its major markets. Notably, Chinese exports to south-east Asia are growing at almost twice the rate of the past four years post the trade tensions with the US. China exports to its neighbours rose 23.5 per cent from $330bn to $407bn in the first nine months of the year compared with the same period last year.
How US Tariffs Affect China?
US Tariffs on China have directly affected the economy of China directly through exports, besides second-order effects on manufacturing investment and domestic consumer sentiment. Further, the US Tariffs will reduce GDP growth by 0.6 percentage points over 2025-27, with the majority of the impact being felt in 2026-27.
China, on the other hand to reduce the tariff impact has expanded its business in Asia markets, with all eyes on major economies. Chinese exports to countries like Indonesia, Singapore, Thailand, the Philippines, Vietnam and Malaysia have doubled over the past five years, while China’s trade surplus with the region hit an all-time high this year. The 2025 increase is nearly twice as high as the 13 per cent compound annual growth rate in the previous four years.
Why US is imposing Tariffs?
Donald Trumps’ tariff war is based on political slogan of America, “Make America Great Again” (MAGA). And this is what exactly has pushed Donald Trump to voluntary create trade tensions with countries like India, China. Trump in this context, argues that the move will boost American manufacturing and create jobs, but critics warn of higher prices and damage to the global economy. India tariffs on US were also a part of MAGA. Trump unaware of the tariff impact on the US itself, says tariffs will increase the amount of tax raised by the government, encourage consumers to buy more American-made goods and boost investment in the US.
- Canada is facing 35% tariffs on its goods
- Mexico is facing 30% tariffs on its goods, plus the sector-specific levies and a 25% fentanyl tariff
- US Tariff News on India created havoc in global markets
- US-China Tariff war Gained Attention from nations across the world
What Experts Say About China Expansion in South-East Asia?
Economists say the latest wave of exports could be tied to attempts to circumvent US tariffs on Chinese-made products, which have been hit by levies of around 47 per cent. This compares with levies of about 19 per cent across many countries in south-east Asia.
Read More News:
- Average Price of Japan Rice Sets New Record High
- US tariffs prompt surge in Chinese exports to south-east Asia
- Explainer: What Makes Delhi’s AQI So Toxic?
- Centre’s new fortified rice norms spark concern among Punjab shellers
- Telangana minister seeks more rice allocation & Grain storage support from Centre
- Pakistan’s Trade deficit widens 37% as exports fall, imports rise
- Union Transport Minister Nitin Gadkari Announced 700 Cr Agriculture College-Cum-Research Centre
- Union Agri Minister Chouhan Launches Saras Aajeevika Food Festival 2025, Promotes Women’s Economic Empowerment
- India, Russia Consider Expanding Cooperation in the Agriculture Sector
- EU Prepares To Limit Rice Imports From India, Other Asian Nations