According to Moody's, US tariffs are detrimental to global industries, with Southeast Asia and South Asia being the most affected regions.

The US has introduced a 40% tariff on goods suspected of being transshipped to combat trade rerouting by Chinese exporters, with additional tariffs of up to 100% on Chinese imports starting November 1. Moody's reports that this will negatively impact sectors globally, particularly in India, Mexico, and ASEAN countries, with industries reliant on Chinese components facing significant risks. The new tariffs complicate supply chain operations and compliance costs, yet the trend of diversifying supply chains away from China is expected to continue.