Manila, Apr 9 (EFE).- The tariffs announced by US President Donald Trump and possible retaliatory measures by affected countries will reduce growth in developing economies in Asia and the Pacific, the Asian Development Bank (ADB) said Wednesday.
“Full implementation of the additional US duties announced on 2 April would reduce growth in the PRC and other regional economies, as well as the US,” the ADB said, before warning that “retaliatory measures by US trading partners would worsen the effects.”
Countries in the region will grow 4.9 percent this year, compared to 5.0 percent last year, and 4.7 percent next year, according to the ADB’s latest forecasts.
The data, the organization said, was compiled before the US unveiled the extension of its tariffs.
Last week, Trump announced the imposition of tariffs against several countries and territories, and the ADB highlighted that five of the ten countries that have received the highest tariffs are in Asia, with Cambodia leading the way (49 percent), followed by Laos (48 percent) and Vietnam (46 percent).
Additionally, the US confirmed the application of additional 50 percent tariffs on China starting Wednesday, raising the rate of tariffs on imports from the Asian country to at least 104 percent.
“Rising tariffs, uncertainties policy, and the possibility of escalating geopolitical tensions are significant challenges to the outlook,” ADB Chief Economist Albert Park warned in the report.
Park called on Asian countries to “retain their commitment to open trade and investment” and strengthen regional ties, highlighting that their economies are based on solid economic fundamentals, which underpin their resilience in this challenging global environment. EFE
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