60% US tariff on China expected to benefit India and Malaysia | Manufacturing Asia
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60% US tariff on China expected to benefit India and Malaysia

The tariff may also drive trade diversion, with China rerouting exports through third countries.

A proposed 60% US tariff on Chinese exports under Trump’s administration is expected to drive supply chain diversification across Asia, with India and Malaysia emerging as key beneficiaries, particularly in electronics and semiconductors.

Nomura said that the US views India as a counterweight to China on foreign policy. It added that any trade or immigration friction is likely to be outweighed by the benefits India stands to gain from the ongoing supply chain shifts.

Meanwhile, Malaysia is projected to benefit over time from higher foreign direct investment inflows from multinational corporations looking to diversify their supply chains.

The tariff may also encourage trade diversion, with China potentially re-routing exports through third countries. However, this could draw closer scrutiny under the new US administration.

 

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