Uncertainties around the US trade policy will undermine business confidence and consumer sentiment, adversely impacting growth in Asian nations, including India, Moody's Ratings said.
An escalation of US-Sino tensions and the spillover effects from a slowdown in China pose significant downside risks to the (Asian) region's growth prospects.
The tariff pause does not reverse the trend of de-globalisation but increases trade policy uncertainty, as the Trump administration's goal of reshoring manufacturing supply chains to the US remains unchanged.
The uncertainty surrounding US trade policies will likely continue to undermine business confidence and consumer sentiment in the region, potentially lowering domestic demand and growth prospects.