Uncertainties around the US trade policy will undermine business confidence and consumer sentiment, adversely impacting growth in Asian nations, including India, Moody’s Ratings said on Sunday. US President Donald Trump has postponed by three months the imposition of reciprocal tariffs, with the exception of China on whom a 125 per cent tariff has been slapped. However, a 10 per cent additional duty on exports to the US will continue.
“An escalation of US-Sino tensions and the spillover effects from a slowdown in China pose significant downside risks to the (Asian) region’s growth prospects. Economies with large domestic markets, such as India, may benefit from companies seeking access to these markets but any major shift in investment flows would occur over several years,” Moody’s Ratings Senior Vice President, Credit Strategy & Guidance, Nicky Dang told PTI.
Moody’s Analytics,…
