Asian economies and companies have always progressed in quantum leaps due to the region’s record of using strong infrastructure development, education, industrial policies and, most significantly, manufacturing to make rapid advances. We see the latest US tariff developments and trade war helping Asia’s next leap forward and potentially hastening Asia’s economic advance through six key trends playing out over the long term.

greater technological independence and leadership.  North Asian companies are at the fore of advanced manufacturing, robotics, AI and green technologies. Protectionist policies could mean such firms will move from being one part of the global supply chain to leading it via own-brands from smartphones to EVs. 
 

increased trade within Asia. Asia is set to comprise 60% of global GDP by 2030 from its current 55% and intra-regional trade is now expected to rise to 65%, or USD 400 billion per year by 2030¹. The Regional Comprehensive Economic Partnership covers 15 economies in Asia-Pacific and has resulted in nearly 60% of Asia’s trade being conducted with regional partners. 
 

greater trade with ‘global south’. China recorded a record trade surplus of USD 1 trillion in 2024 and its exports to the US represent less than 15% of its total exports. US trade policies will inadvertently promote greater trade, investment and cooperation between the global south and Asia.
 

going global faster. Higher tariffs are encouraging Asian companies to expand globally more quickly. Firms are establishing plant and production facilities globally rather than relying purely on exporting. One example is the growth and globalisation of the Chinese automotive industry.
 

read also: climate equities: transitioning companies vs the rest

hastening domestic consumption patterns. Asia has a high savings pool at 27% of regional GDP and China’s housing savings pool has risen to USD 20 trn². Policy in Asia now seeks to mobilise greater domestic consumption especially via digital services growth.
 

reduced reliance on commodities and the dollar. Asia is accelerating its development of renewable or self-sourced energy, reducing the drag on its current account from global imports of energy and other products in dollars. India has even utilised this tactic to attract record foreign investment in its green energy sector.