Impact of a Second Trump Presidency on Asian Economies

LONDON (Reuters) – A second Donald Trump presidency could lead to significantly lower economic growth in several Asian economies, particularly affecting China, South Korea, and Vietnam, according to ratings agency Fitch.

Economic Predictions

Under its worst-case scenario, real GDP in China, South Korea, and Vietnam in 2028 might be 1% or more below Fitch's current expectations if U.S. trade protectionism increases sharply.

Tariff Plans

As part of his appeal to voters in the upcoming election, former President Trump has proposed blanket tariffs of 10% to 20% on nearly all imports and tariffs exceeding 60% on goods from China.

Broader Impact

Fitch noted that intensified trade tensions could significantly impact countries and companies that export goods to the U.S. However, it stated that India would be relatively unaffected due to its less export-oriented economy.