US tariffs threaten South and Southeast Asian sectors
Moody's Ratings has identified that US tariffs pose significant risks to companies in South and Southeast Asia, particularly in the automotive, steel, chemicals, and business services sectors. These tariffs could lead to reduced demand and increased costs. Indian IT firms like Tata Consultancy Services and Infosys are less affected by potential changes in US immigration policy, as they maintain strong profitability. In contrast, most companies in the mining and energy sectors are not directly impacted by US tariffs. Vehicle exports to the US are minimal, accounting for about 3% of India's total exports and 1% for Southeast Asia. The US has a trade deficit with many countries in the region, including India.