The new trade deadline set by the United States is likely to intensify pressure on Asia-Pacific (APAC) economies to conclude trade deals, global credit rating agency Moody’s Ratings said on July 11. The warning comes amid data showing that APAC’s goods exports to the US rose 4 percent in the first two months since the imposition of reciprocal tariffs.
“Economies in APAC are particularly vulnerable to higher tariffs because of their heavy reliance on trade and high exposure to goods exports to the US,” Moody’s Ratings stated.
“The 25 sovereign issuers we rate in the region accounted for around 40% of US goods imports in 2024 and form the backbone of global supply chains,” it further added.
During April–May 2024, exports to the US from 40 countries in the APAC region rose to $223 billion from $214 billion, despite the tariff uncertainty. India was among the countries that benefited, recording a rise in exports to the US during this period.
Since July 7, the US has imposed tariffs on 23 countries under the new reciprocal trade regime.
While most economies received some relaxation, the Asia-Pacific region witnessed a range of tariff impositions—Philippines received the lowest at 20 percent, while Laos and Myanmar faced some of the steepest duties at 40 percent.
Moody’s said the final shape of the US tariff regime is still evolving, but would raise average duty rates higher.
“The final tariff configuration remains unclear, but we currently expect the effective US tariff rate to settle in the 10–15 percent range, including targeted policies such as 50 percent on imported steel and aluminum and 25 percent on autos and auto parts,” the ratings firm noted.
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