The resurgence of tariffs as a US foreign policy tool could dampen the positive momentum in Asia Pacific's sovereign credit ratings, S&P Global Ratings said in a Thursday release.
Potential increases in US tariffs could pose risks to Asia Pacific's export-oriented economies, although the region is still expected to maintain its economic growth in 2025, S&P credit analyst Kim Eng Tan said.
The analyst does not expect the measures to instantly pressure the region's sovereign ratings, with most of them remaining investment grade with stable outlooks.
However, the rating agency said miscalculated tariff increases could have a significant impact on global GDP.
Some economies may see short-term benefits from geopolitical tensions, with exporters in other countries taking market share in key Chinese products shipped in the US, Tan said.
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