This podcast discusses the escalating risk of reciprocal tariffs between the U.S. and Asian economies, focusing on the potential impact of President Trump's proposed tariffs. Chetan Ahya, Morgan Stanley's Chief Asia Economist, details how several Asian economies, particularly India, Thailand, and Korea, may face significant tariff hikes if the U.S. implements reciprocal tariffs based on existing tariff differentials. He notes that while the overall impact might be manageable, the policy uncertainty could negatively affect corporate confidence and economic growth. Ahya also highlights attempts by some Asian nations, like Japan and India, to mitigate potential trade conflicts through increased investment and imports from the U.S. The podcast concludes by emphasizing the ongoing threat of tariffs from the U.S. administration and its potential negative consequences.
