Trump 2.0 – A boon or bane for Asia?
Investing.com — Donald Trump’s return to the White House has sparked uncertainty for Asia, with potential trade policies presenting both risks and opportunities, according to Value Partners’ 2025 market outlook.
The prospect of higher U.S. tariffs on Chinese imports could strain Asia’s export-driven economies. However, China may counter with fiscal and monetary stimulus, as it did during Trump’s previous tenure. Measures to support domestic demand and diversify exports could help mitigate the impact.
Southeast Asia could benefit from supply chain shifts as companies adopt a “China-plus-one” strategy, moving manufacturing to countries with competitive costs like Vietnam and Indonesia. This dynamic could bolster investments in the region.
On the downside, broader tariffs on goods with Chinese supply chain components could hurt other Asian exporters. Additionally, higher inflation and a stronger U.S. dollar might limit Asia’s monetary policy flexibility.
Despite the uncertainties, Value Partners remains cautiously optimistic. Asia’s lower market valuations and strong domestic demand in countries like India and Indonesia may offer resilience, while targeted security selection could uncover opportunities amid volatility.
