BANGKOK, Thailand – Financial analysts caution that Asian currencies, including the Thai baht, are at risk of being impacted by U.S. President-elect Donald Trump’s proposed tariff measures, November 27. The announcement of a 25% tariff on imports from Mexico and Canada, along with an additional 10% tariff on Chinese goods, has heightened market pressures.
Currency and Market Concerns
Analysts predict that Asian currencies such as the South Korean won and the Thai baht, seen as proxies for confidence in China’s economy, are likely to underperform. Stock markets in China, Mexico, and Canada, particularly those heavily reliant on exports to the U.S., are also expected to face downward adjustments.
Andrew Ticehurst, a senior foreign exchange strategist at Nomura in Sydney, explained, “Trump’s tariff measures are sparking concerns about global inflation, economic growth, and geopolitical uncertainties. The initial market reaction has seen a stronger U.S. dollar and rising bond yields.”
Broader Implications on Asian Currencies
Bloomberg reports that analysts foresee Trump’s tariffs adding pressure on Asian currencies. Song Ki-young, a senior strategist at Societe Generale in Hong Kong, noted, “Even if the U.S. gradually implements these tariffs, markets often react to anticipated future measures. We believe emerging market currencies will be affected unevenly, depending on each country’s trade exposure. Among Asian currencies, the yuan is expected to perform the worst.”
Chinese Stocks at Risk
Rajeev De Mello, a global portfolio manager at Gama Asset Management SA, stated, “Chinese stocks are likely to face additional pressure due to the swiftness of the tariff announcements. Trump may act on his campaign promises sooner than anticipated, possibly even before his inauguration.”
The developing situation underscores the uncertainty surrounding the global economy and highlights the potential ripple effects of U.S. trade policies on Asia’s financial landscape.
