US tariff policies to enhance intra-Asia cooperation: Nomura Global Research Head

By Sharon Hu, SFC, 21st Century Business Herald

"The United States' imposition of high tariffs on Asia is actually forcing Asian enterprises to enhance their competitiveness, which is ultimately a good thing for them," Rob Subbaraman, Head of Global Macro Research & Co-Head of Global Markets Research at global financial institution Nomura, told SFC on the sideline of the "2025 Nomura China Investment Forum" in Shenzhen on Wednesday.

Recently, the United Nations Development Programme (UNDP) released its first trade volume estimate since the tariffs took effect. The report indicates that as tariffs trigger price increases, Southeast Asia's total exports to the United States may drop by 9.7%. Among them, Vietnam's potential decline could reach as high as 19.2%, twice the average level in Southeast Asia.

Subbaraman stated that despite the surging U.S. tariffs, geopolitical frictions, and mounting fiscal pressures this year, the global economy has demonstrated remarkable resilience. This resilience is mainly driven by the revolutionary transformation of artificial intelligence, enterprises' flexible adjustment of foreign trade directions, moderately accommodative monetary and fiscal policies, and an overall loose financial environment. Inflation is likely to remain at historically low levels, he added.