#CNA Trump tariffs unlikely to deter FDIs into China, Vietnam: DBS Economist

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Trump tariffs unlikely to deter FDIs into China, Vietnam: DBS Economist
China and Southeast Asian countries are among those hardest hit by sweeping tariffs announced by United States President Donald Trump on Wednesday (Apr 2). Chinese imports will be hit with a 34 per cent tariff, on top of the previously imposed 20 per cent levy, while Vietnam was slapped with 46 per cent. Taimur Baig, chief economist and managing director of DBS Group Research, says it is unlikely the tariffs will deter future foreign direct investments (FDI) into China and Vietnam, as the value they offer transcends exposure to the US. He tells CNA’s East Asia Tonight: “China’s ability to deliver top notch technology and manufacturing at a reasonable price will remain a value proposition which the rest of the world cannot refuse.”

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