Can Kyrgyzstan Profit from the US-China Trade War?

Thursday, April 10, 2025, 13:08 Expert Comments on Anticipated Price Changes Stock markets in Europe, the US, and Asia collapsed following the tariffs imposed by US President Donald Trump and investor fears about the onset of a global recession. At the beginning of trading, the S&P 500 fell by 4.71% to 4835.16 points. NASDAQ Composite dropped by 5.15% to 14785.47 points, and the Dow Jones Industrial Average declined by 4.44%, reaching 36613.16 points. Earlier, Asian stock markets plunged. The MSCI Asia Pacific index fell by 8.5%. Hong Kong's Hang Seng index crashed by more than 13%, Taiwan's technology stock index lost 9.7%, and Japan’s Topix and Nikkei indexes dropped 7.8%. Additionally, the Amsterdam Stock Exchange fell by 5.5%, while exchanges in Stockholm and Copenhagen dropped by nearly 7%. On Monday, April 7, the main index of the Frankfurt Stock Exchange, Germany’s largest and one of the world's leading exchanges, also collapsed. On Tuesday, Donald Trump increased tariffs on goods from China to 125%. However, Trump recently stated that Chinese leader Xi Jinping remains his friend and that new negotiations with Beijing are planned. Trump also implemented a 90-day freeze on new tariffs of 10% for all countries except Canada and Mexico. Economist Iskender Sharsheev commented to Vesti.kg about how these tariff disruptions might affect the internal economy and business in Kyrgyzstan. “I know many traders who were extremely upset by the events over the weekend and on Monday. Such tariffs will inevitably impact our market, pushing prices up,” he warned. The expert noted that changes noticeable to ordinary citizens would not be immediate but would occur gradually. “Typically, the reaction wave moves slowly. Prices for certain products that China cannot export to the US may fall here in Kyrgyzstan. However, food products, raw materials, and other goods may see sharp price increases. The US exports up to 25% of the world's food products, including soybeans, grains, legumes, etc. We will feel this as a general increase in inflation,” Sharsheev explained. Kyrgyzstan will simultaneously gain new opportunities to increase trade turnover with both the US and China. “Although moving production from countries with sharply increased tariffs to our republic would be beneficial, it is unlikely to happen in the near future due to logistical complications. More likely, there could be an increase in legal re-registration of products, with actual logistics remaining the same, similar to what occurred with Russia, China, and Europe after 2022,” the expert concluded. Узнать больше: https://vesti.kg/zxc/item/137678-smozhet-li-kyrgyzstan-navaritsya-na-torgovoj-vojne-mezhdu-kitaem-i-ssha.html - Сможет ли Кыргызстан «навариться» на торговой войне между Китаем и США? - Вести.kg - Новости Кыргызстана Kyrgyzstan, US-China Trade War, Tariffs, Global Recession, Stock Market Crash, S&P 500, NASDAQ, Dow Jones, MSCI Asia Pacific, Hang Seng, Taiwan Stock Market, Nikkei, Topix, Frankfurt Stock Exchange, DAX, Inflation, Donald Trump, Xi Jinping, International Trade, Logistics, Supply Chain, Import Export, Commodities, Food Prices, Economic Impact, Trade Opportunities, Investment, Market Volatility, Economic Forecast, Asia Economy