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4d ago

IMF Urges Asia to Cut Non‑Tariff Barriers, Deepen Regional Trade to Withstand U.S. Tariffs

The fund says cutting non-tariff barriers would buffer economies against tariff shocks.

A drone view shows ships and containers at the port in Qingdao, Shandong province, China October 20, 2025. China Daily via REUTERS
IMF Director of the Asia and Pacific Department Krishna Srinivasan and IMF Deputy Director of the Asia and Pacific Department Thomas Helbling attend an Asia Pacific Department press briefing at the IMF/World Bank 2025 Annual Meetings in Washington, D.C., U.S., October 16, 2025. REUTERS/Elizabeth Frantz
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Overview

  • The IMF raised its 2025 growth outlook for Asia to 4.5% and projects a slowdown to 4.1% in 2026 as trade tensions and softer demand in China weigh on activity.
  • Officials warn Asia’s recent resilience could fade if the U.S. dollar strengthens or long-term interest rates climb, increasing already high debt-servicing burdens.
  • This year’s export strength reflects front‑loading of shipments ahead of higher U.S. tariffs and an AI-driven investment boom that has lifted intra‑regional trade.
  • The IMF urges reductions in pervasive non‑tariff barriers and broader regional trade agreements, estimating medium‑term output gains of up to 1.4% for Asia and 4% for ASEAN.
  • Policy advice includes targeted fiscal and monetary support, preserving central bank independence to anchor inflation, and structural reforms to boost productivity and domestic demand.