IMF Urges Asian Nations to Reduce Trade Barriers Amid U.S. Tariff Pressures
The International Monetary Fund has called on Asian economies to dismantle non-tariff trade walls and deepen regional integration as a buffer against U.S. protectionist measures. The October 24 recommendation comes as China's central role in global supply chains leaves the region exposed to escalating Sino-American trade tensions.
Asia's intraregional commerce now accounts for 60% of total exports, a trend accelerated by AI-driven investment flows and Washington's tariff policies. Yet only 30% of exported goods originate domestically—a vulnerability the IMF attributes to overreliance on Western markets.
"Diversification through regional partnerships could mitigate tariff shocks," said Krishna Srinivasan of the IMF's Asia-Pacific Department, noting how intermediate goods dominate cross-border exchanges. The prescription arrives as multiple nations negotiate bilateral trade terms with the U.S.
