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China, Vietnam, South Korea could see 1% GDP hit from Trump presidency, say Fitch

Published 10/14/2024, 03:08 AM
Updated 10/14/2024, 03:27 AM
© Reuters. Republican presidential nominee and former U.S. President Donald Trump looks on during a campaign rally in Prescott Valley, Arizona, U.S., October 13, 2024.  REUTERS/Go Nakamura

LONDON (Reuters) - A second Donald Trump presidency could lead to significantly lower economic growth in several Asian economies, with China, South Korea and Vietnam particularly affected, ratings agency Fitch said on Monday.

Under its worst-case scenario, real GDP in those three countries in 2028 could be 1% or more below Fitch's current expectations, if U.S. trade protectionism increases sharply.

© Reuters. Republican presidential nominee and former U.S. President Donald Trump looks on during a campaign rally in Prescott Valley, Arizona, U.S., October 13, 2024.  REUTERS/Go Nakamura

The former president, as part of his pitch to voters in the knife-edge election, has floated plans for blanket tariffs of 10% to 20% on virtually all imports as well as tariffs of 60% or more on goods from China.

Intensified trade tensions may have significant effects for countries and companies that export goods to the U.S., said Fitch. It said India would be relatively unaffected, as it is less export-orientated.

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