Southeast Asian Countries as the Biggest Victims of US-China Trade War?
According to analysts' forecasts, the Philippines is the hardest hit in Southeast Asia because of trade wars between China and the United States. Specialists report that about 16.9% of Philippine exports go to China. Thus, the trade wars between the US and China will have a tangible impact on the economy of a small South Asian island nation. Market analysts suggest that the sectors that are likely to be hit badly are electronics, electrical machinery such as computers and industrial goods.
American President Donald Trump instructed his administration to consider tariffs on imports of Chinese goods by about $100 billion, not wanting to alleviate the tension that arose in the trade. Thus, South-East Asian politicians focused on domestic markets in order to mitigate the consequences if the situation worsens.
China is the largest trading partner for many countries in Southeast Asia, and its investments in the economy, including tourism, are very tangible. While large home markets in Indonesia and the Philippines are trying to protect the economy from trade wars, countries in the region such as Singapore, Malaysia and Thailand are more dependent on exports, which will also suffer greatly.