Original Source
Trump's Iran Policy Raises Concerns for Asia's Economies
Asia's Growing Vulnerability to External Shocks
For the second consecutive year, concerns have been raised about Asia's vulnerability to global shocks. Almost a year after US President Donald Trump began his assault on the global trading system, the external dependencies of leading Asian economies have once again dimmed the outlook for the region. Early last year, analysts were particularly worried about Asia's heavy reliance on exports to the United States.
Deepening Reliance on US Trade Surplus Nations
Morgan Stanley highlighted that seven of the ten countries with the largest trade surpluses with the United States are located in Asia. This indicates a significant dependence of Asian economies on their connections with the US market. The ongoing trade policies of the Trump administration are contributing to this external reliance, acting as a major source of instability for Asian economies.
*Source: SCMP (2026-03-26)*
