Nomura Says US to Set High Asia Tariffs to Stop China Rerouting

The US may keep elevated tariffs on Southeast Asian countries amid data suggesting that China is diverting goods through the region to avoid higher levies, according to Nomura Holdings Inc.

Despite the flurry of trade negotiations, Washington may end up imposing an average tariff rate of 15.5% on Southeast Asia as it aims to stamp out the practice of transshipment, Nomura economists led by Euben Paracuelles said in a June 16 note.