Investing.com — Donald Trump’s return to the White House has created uncertainty in Asia, with potential trade policies presenting both risks and opportunities, according to Value Partners’ 2025 market outlook.
The prospect of higher US tariffs on Chinese imports could derail Asia’s export-driven economy. However, China may oppose fiscal and monetary stimulus, as it did during the previous Trump administration. Measures to support domestic demand and diversify exports can help mitigate the impact.
Southeast Asia may benefit from a shift in procurement as companies adopt a “China-plus-one” strategy, moving production to cost-competitive countries such as Vietnam and Indonesia. This flexibility can strengthen investment in the region.
On the other hand, higher tariffs on goods that are part of China’s supply chain could hurt other Asian exporters. Additionally, high inflation and a strong US dollar may limit the flexibility of Asian monetary policy.
Despite the uncertainty, Value Partners remains cautiously optimistic. Lower Asian market rates and strong domestic demand in countries such as India and Indonesia may provide resilience, while selective security targets may open up opportunities amid volatility.
