Economy

ADB Warns U.S. Tariffs Could Slow Growth of Emerging Asia; Reduced Demand for Exports Risks Factory Closures

Reuters file photo
U.S. President Donald Trump delivers remarks on tariffs at the White House in Washington on April 2.

By Takashi Itoda / Yomiuri Shimbun Correspondent

20:04 JST, April 9, 2025

BANGKOK — The Asian Development Bank announced Wednesday that the growth rate of emerging Asian economies could be pushed down by about 0.3 percentage points if the U.S. administration fully implements reciprocal tariffs.

Headquartered in Manila, the ADB currently forecasts a growth rate of 4.9% for emerging Asia in 2025, excluding Japan and a few other countries.

Under its reciprocal tariff framework, the administration of U.S. President Donald Trump proposes imposing additional tariffs, specifically 49% on Cambodia, 46% on Vietnam, 48% on Laos, and 26% on India.

According to ADB Chief Economist Albert Park, the additional tariffs could hurt demand for those nations’ exports, risking factory closures and reduced production. He also said that the significant uncertainty created by these tariffs would likely deter investment, and expressed concern about a potential economic slowdown.

Emerging Asian nations experienced a 5% growth rate in 2024, maintaining a high level of growth from 5.5% in 2023, according to the ADB.