What does Trump's transshipment crackdown mean for Asian industrial property?
in its sights . The region has become more trade-dependent since the 2018-19 US-China trade war. Asia ex-China's trade surplus with the US doubled from September 2019 to US$400 billion at the end of last year.
However, it is not just the widening trade imbalance that has incurred the Trump administration's wrath. The surge in Asian, particularly Southeast Asian, exports to the US was accompanied by a
sharp increase in Chinese imports in many countries in the region. In Vietnam, Indonesia and Thailand, the share of imports from China has risen to 28-39 per cent, up from 20-30 per cent in 2015, according to Nomura data.
The correlation between Asia's exports to the US and its imports from China underpins a key plank of Trump's new trade strategy:
cracking down on 'transshipments' in an attempt to stop China using other Asian markets as a back door for repackaged exports to the US, avoiding the higher tariffs placed on goods exported directly from China.
Trump's efforts to reduce China's role in Asian supply chains pose a bigger challenge to the region's economies than the ones they faced during the 2018 trade conflict, some of which turned into opportunities as several economies capitalised on the effects of
trade diversion
In the property industry, the manufacturing-driven industrial and logistics sector is the most vulnerable to the disruption and reshaping of world trade. Asia's
industrial real estate , which includes properties used for manufacturing, distribution and storage of goods, is ground zero for the impact of tariffs on commercial property.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
12 minutes ago
- South China Morning Post
Trump is in Epstein files, report says, but White House calls it fake news
US Attorney General Pam Bondi told President Donald Trump in May that his name appeared in Justice Department files about Jeffrey Epstein, the convicted sex offender who died in prison, The Wall Street Journal reported on Wednesday, citing senior administration officials. Reuters was not able to immediately verify the Journal's report, which the White House condemned as 'fake news'. The Justice Department concluded in early July that there was not a basis to continue the Epstein probe, triggering a backlash among Trump's political base who demanded more information about wealthy and powerful people who had interacted with Epstein. 'Nothing in the files warranted further investigation or prosecution, and we have filed a motion in court to unseal the underlying grand jury transcripts. As part of our routine briefing, we made the President aware of the findings,' Bondi and Deputy Attorney General Todd Blanche said in a statement on Wednesday. Trump has not been accused of wrongdoing related to Epstein. US Attorney General Pam Bondi speaks to the media at the White House in June, as US President Donald Trump looks on. Photo: Reuters That came shortly after a federal judge in South Florida denied a Justice Department request to unseal grand jury transcripts related to Epstein, the first ruling in a series of attempts by Trump's administration to release more information on the case.
South China Morning Post
3 hours ago
- South China Morning Post
Republican lawmakers avoid awkward Epstein votes by taking early summer break
The Republican leadership in the US House of Representatives on Wednesday sent lawmakers home early for a six-week summer break, to avoid being forced into awkward votes on the probe into the late, politically connected sex offender Jeffrey Epstein. Advertisement The furore around the disgraced financier, who died in prison in 2019 while awaiting trial for trafficking minors, is still roiling Donald Trump's administration two weeks after his Justice Department effectively closed the case, announcing there was no more information to share. Democrats in the House – keen to capitalise on the simmering controversy – have been trying to force a vote that would compel the publication of the full Epstein case files. Desperate to avert the effort and unable to bring up anything but the most non-controversial bills, the Republican leadership cancelled votes scheduled for Thursday – sending lawmakers home for the August recess a day early. House Speaker Mike Johnson, a Trump loyalist who was under pressure from the president not to allow any Epstein votes, voiced hopes that the break would provide 'space' for a resolution. Advertisement But Democrats accused the majority Republicans of running scared of their own voters, many of whom have been demanding more transparency.
South China Morning Post
4 hours ago
- South China Morning Post
Trump admin investigates Harvard eligibility for foreign scholar visa programme
In the latest in a series of Trump administration inquiries targeting Harvard University, the US State Department said on Wednesday that it was investigating whether the Ivy League school would remain part of a government programme that provides American visas for students and researchers from other countries. Advertisement Harvard has faced mounting sanctions and scrutiny from Washington since rejecting demands from a federal antisemitism task force in April. Harvard has filed a lawsuit challenging US$2.6 billion in federal cuts and has accused the Republican administration of waging a retaliation campaign. The statement from US Secretary of State Marco Rubio did not say why his department was examining Harvard's eligibility to take part in the Exchange Visitor Programme, which allows foreign nationals to study or work in the United States through cultural and education exchange programmes. It said all sponsors, such as Harvard, 'are required to fully comply with exchange visitor regulations, transparency in reporting, and a demonstrated commitment to fostering the principles of cultural exchange and mutual understanding upon which the programme was founded'. 04:21 Citing China 'activity', Trump administration bars Harvard from enrolling foreign students Citing China 'activity', Trump administration bars Harvard from enrolling foreign students Harvard spokesman Jason Newton said the investigation was 'another retaliatory step' taken by the administration.
