2025.10.2403:00:28UTC+00IMF: Asia Must Slash Trade Barriers to Shield Against US Tariffs

The International Monetary Fund (IMF) has recommended that Asian nations take measures to cut non-tariff barriers and enhance regional trade integration as a strategy to reduce their exposure to US-imposed tariffs and global financial disturbances. Trade has played a significant role in propelling Asia's economic growth, with China operating as a vital hub for global goods production. However, this central role in production makes the region particularly susceptible to disruptions stemming from US-China trade tensions and tariffs initiated by President Trump, according to the IMF's regional economic outlook report for Asia.

The rise in trade disputes with the United States, alongside the booming investment in artificial intelligence, has contributed to the increase in intra-regional trade within Asia. "If Asia becomes more integrated within its region, it would serve as a protective measure against external shocks," stated Krishna Srinivasan, director of the IMF's Asia and Pacific Department, in an interview with Reuters. Asia's trade dynamics are heavily interconnected, especially in the intermediate goods sector, with around 60% of the region's total exports occurring internally.