S&P Global on US Tariffs: Asia-Pacific Retaliation Risk
Why in the news
S&P Global Ratings warned that several Asia-Pacific economies could face higher US tariffs under the Trump administration, with India among the most exposed.
Key facts
- Highest retaliation risk: India, South Korea, Thailand; Vietnam, Taiwan, Thailand and South Korea are sensitive because of heavy US exposure.
- Already imposed: 10% extra on Chinese imports; 25% on steel and aluminium imports.
- Trump announced plans to raise reciprocal tariffs on key partners, including India.
- Some Asia-Pacific economies levy higher tariffs on US goods than the US does on theirs, inviting retaliation.
Uncertainty ahead
- The US holds broad powers to impose tariffs, and bilateral negotiations shape policy.
- Manufacturing, steel and technology are likely to face higher barriers.
India’s position
- Exposed, but a big domestic market gives partial protection.
Exam angle
- Rating agency: S&P Global Ratings.
- Term: reciprocal tariffs.