Navigating Tariff Shocks: The Resilience and Opportunities in Asia's Post-Trade Infrastructure

The global trade landscape has been reshaped by aggressive policy shifts under the re-elected Trump administration, with tariffs on Chinese and Asian goods reaching as high as 100% in key sectors like electric vehicles. These measures have created turbulence for asset servicing operations-clearing, settlement, and custody systems-across Asia's emerging markets. Yet, amid the disruption, a new era of resilience and innovation is emerging, driven by digital transformation, regional integration, and strategic recalibration of global value chains.

Tariff Shocks and the Strain on Asset Servicing

The reimposition of steep U.S. tariffs has forced Asian economies to confront dual challenges: reduced export demand to the U.S. and intensified competition from Chinese goods rerouted to alternative markets. For asset servicing providers, this has meant recalibrating settlement mechanisms and navigating regulatory uncertainties. In Southeast Asia, countries like Vietnam and Thailand, which previously benefited from trade diversification during the first Trump administration, now face renewed protectionist barriers. For example, Vietnam's tariffs on U.S. goods surged to 49% in 2025, leading to canceled orders and factory closures in the short term.

The strain extends to custody models. To mitigate trade shocks, governments have leveraged financial institutions to stabilize economic resilience. Vietnam launched a 500 trillion VND (~$20 billion) low-interest loan program involving 21 banks, while Malaysia cut reserve requirements to inject liquidity into its banking system. These measures highlight the critical role of asset servicing infrastructure in buffering macroeconomic volatility.

Emerging Market Adaptations: Diversification and Digitalization

Emerging markets in Asia are responding with a mix of strategic diversification and technological innovation. India, for instance, has leveraged its demographic dividend and structural reforms to attract foreign direct investment despite a 50% U.S. tariff imposed in August 2025. Meanwhile, digital infrastructure is accelerating adaptation. The U.S. GENIUS Act's regulatory framework for stablecoins, coupled with partnerships between banks and non-bank digital asset platforms, is enabling faster, more resilient post-trade operations.

Regional integration has also gained momentum. The Regional Comprehensive Economic Partnership (RCEP) has reduced tariffs and harmonized standards, insulating the Asia-Pacific from global trade uncertainties. For example, South Korea and Japan's investments in U.S. energy and AI sectors under bilateral trade agreements demonstrate a shift toward diversified value chains.

Opportunities in Post-Trade Infrastructure

The turbulence has unlocked opportunities for innovation in post-trade infrastructure. Southeast Asian banks are industrializing AI to strengthen defenses against financial crime and enhance operational resilience. In Indonesia and Vietnam, Q2 2025 growth was bolstered by businesses front-loading activities during a temporary tariff pause, signaling adaptability in trade flows.

Moreover, the de-dollarization trend is gaining traction. Asian corporations are exploring alternative currencies for settlement, driven by concerns over the U.S. dollar's reliability amid weaponized trade policies. This shift is likely to spur demand for localized clearing and custody solutions, particularly in RCEP member states.

Conclusion: Resilience and the Path Forward

While U.S. tariffs have introduced significant headwinds, Asia's post-trade infrastructure is demonstrating remarkable adaptability. From digital asset platforms to regional trade agreements, the region is recalibrating its economic architecture to withstand geopolitical shocks. For investors, the focus is shifting toward value creation and creative exits, particularly in markets like China, where technological leadership in AI and digital infrastructure remains a draw.

As the second half of 2025 unfolds, the challenge will be balancing short-term volatility with long-term strategic investments. The resilience of Asia's post-trade systems-rooted in innovation and regional solidarity-suggests that the region is not merely surviving the tariff shocks but positioning itself to thrive in a reconfigured global economy.