IMF urges Asia to cut trade barriers to beat US tariffs

The International Monetary Fund on Friday urged Asia to lower non-tariff barriers and integrate regional trade to reduce its vulnerability to U.S. tariffs and global financial shocks. Trade has been central to Asia’s economic growth with China serving as the supply chain hub for goods production across the globe, which makes it vulnerable to the hit from U.S.-China trade tensions and President Donald Trump’s tariffs, the IMF said in a regional economic outlook report for Asia. Trade friction with the U.S. and an investment boom in artificial intelligence have led to rising intra-regional trade in Asia, the report said. Promoting further regional trade integration, including by removing trade barriers, could help Asian countries diversify export markets, reduce costs and offset some of the headwinds from the tariff shocks, it said.