Investing.com — Donald Trump’s return to the White House has raised uncertainty for Asia, and potential trade policies pose both risks and opportunities, according to Value Partners’ 2025 market outlook.
The prospect of higher US tariffs on Chinese imports could weigh on Asia’s export-oriented economies. However, China could push back against fiscal and monetary stimulus, as it did during Trump’s previous term. Measures to support domestic demand and diversify exports could help mitigate the impact.
Southeast Asia could benefit from supply chain shifts as companies adopt a “China plus one” strategy, moving production to cost-competitive countries like Vietnam and Indonesia. This dynamic could encourage investments in the region.
On the downside, broader tariffs on goods with Chinese supply chain components could hurt other Asian exporters. In addition, higher inflation and a stronger US dollar could limit the flexibility of Asian monetary policy.
Despite the uncertainties, Value Partners remains cautiously optimistic. Lower market values in Asia and strong domestic demand in countries such as India and Indonesia may offer resilience, while targeted safety picking could reveal opportunities amid volatility.
