J P M O R G A N Asia Pacific Economic Research 22 December 2025 Global Data Watch: Asia China's post-tariff export diversification is broader than presumed No place to hide: China's post-tariff export diversification is broader than presumed A recurring theme characterizing 2025 has been that Chinese domestic demand disappointments have been offset by external sector resilience. Even as US tariffs on China at ~32% are among the highest in the world, China's goods exports have grown by 5% in 2025, in line wi ...

Impact of US Tariffs on India - Higher US tariffs are already impacting India's exports to the US, leading to contraction in some product categories and affecting labor-intensive sectors, particularly MSMEs [1][2] - If India faces a 50% US tariff, it could result in approximately a 0.5 percentage point reduction on an annualized basis [3] Countercyclical Policy Easing - India has implemented countercyclical policies, including interest rate cuts, liquidity easing, and macroprudential easing, to boost credit and offset the impact of US tariffs over the next 12 months [3] Government Reform Measures - The government is supporting exporters and implementing reform measures, including tax cuts and labor reforms, to address potential pressure on growth [4] - Further reforms are expected to improve the ease of doing business, including decriminalizing laws [5] Attracting Foreign Investment - India aims to attract more foreign direct investment into sectors like atomic energy, insurance, and banking [6] Focus on Diversification and Self-Sufficiency - The focus remains on export diversification, boosting domestic demand, increasing self-sufficiency in the supply chain, and GVC integration [2][3][4][6] - India aims to signal that it remains open to business [7]