Trump’s ‘Black Box’ Tariff Formula Adds Uncertainty Across Asia
- Move raise chances of more nations getting hit, Nomura says
- Hard to quantify non-tariff factors such as VAT and currency
Shipping containers at the Mundra Port of Adani Ports and Special Economic Zone Ltd. in Mundra, Gujarat, India.
Photographer: Sumit Dayal/BloombergThis article is for subscribers only.
President Donald Trump’s more broad definition of reciprocal tariffs unveiled last week likely exposes most Asian economies to US levies, according to economists at Nomura Holdings Inc.
Trump’s announcement of new levies based on total tariffs, as well as tax, regulatory and currency policies, is hard to quantify, the analysts said. This “black box” of non-tariff barriers leaves room for him to widen the net of countries targeted in Asia.