New Delhi ,nov 10
With Donald Trump set to become the next US president after the recently closely contested president polls, India and other Asian countries are expected to benefit due to rising US-China tensions and potential investment restrictions in strategic sectors, as per Moody’s Ratings.”In the Asia-Pacific region, trade and investment flows might be further diverted away from China as the US tightens investments in strategic sectors, which would negatively affect China’s economy and consequently dampen regional growth. However, this shift might benefit India and ASEAN countries,” the global rating agency said.The global agency anticipated a significantly shift under the Trump administration across fiscal, trade, climate, and immigration issues, departing from the approach of the administration of the current US President Joe Biden.The rating agency added that Trump could have both legislative and executive avenues to advance his agenda on every front.It further added that as a candidate, Trump promised tax reform, with plans to make the 2017 Tax Cuts and Jobs Act permanent, lower the corporate tax rate, and implement income tax relief. These initiatives, along with targeted and broad tariffs, including steep tariffs on Chinese imports, are expected to increase federal deficits.It highlighted that the US under Trump will adopt a protectionist tarde policy, which would be more disruptive and increase the risks to global growth.”Protectionist measures could disrupt global supply chains and negatively affect sectors that rely on imported materials and goods, such as manufacturing, technology, and retail,” it added.
