United States tariffs on Asian economies spark supply-chain tensions

The White House announced new tariffs of 10%‑12.5% on about 60 foreign economies, citing concerns over forced labor. Asian governments, including India, South Korea and Singapore, expressed disappointment and warned of possible retaliatory measures. The duties target key sectors such as textiles, electronics and industrial components, with analysts estimating an $8 billion hit to South Korean semiconductor and auto exports and broader impacts on the region’s manufacturing base. China, while not directly listed, is watching the moves closely as they could accelerate reshoring and the China+1 shift.

Despite the trade escalation, major Asian equity markets rose, buoyed by a 5%‑plus decline in oil prices after the United States and Iran paused attacks. Lower crude prices lifted industrial margins and eased inflation expectations, driving gains in the Nikkei, Hang Seng, Shanghai and Shenzhen indices, while South Korea’s Kospi slipped due to its higher exposure to the new tariffs.