US Tariffs: Which Asian Exporters Are Absorbing The Costs

As US tariffs rise, Asian exporters face a stark choice: absorb the costs and see margins shrink, or pass them on and risk losing market share. A new report from Nomura finds that, on average, Asian exporters are absorbing about one-fifth of these new costs, but the strategy varies dramatically across countries and industries.

Sonal Varma, Chief Economist for India and Asia ex-Japan at Nomura, joins us to unpack this critical issue. She discusses who is absorbing the costs versus who is passing them on, the "double whammy" of tariffs combined with currency appreciation, and what this means for competitiveness and growth across the region.

We discuss:

• The key findings from Nomura's report on US tariffs and Asian trade.

• Who is absorbing the costs vs. passing them on, and why.

• The "double whammy" of tariffs and currency appreciation squeezing margins.

• The specific sectors, like electronics and autos, that are under the most pressure.

• The outlook for trade and growth as tariffs continue to rise.

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