Business Daily Can Asia’s economic growth hold up in 2026?
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Jan 6, 2026 Suranjana Tewari, an Asia business correspondent, and Arunoday Mukharji, who reports on India's economy, dive into the economic landscape of 2026. They discuss the fallout from 2025's tariff shocks on supply chains and the innovative partnerships emerging as a result. India's challenging trade negotiations with the US are highlighted, along with its strategic pivot to other nations. The duo also explores investments in AI infrastructure across Asia and contrasts growth prospects between Asia and stagnating Western economies.
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Tariff Storms Reshaped Asian Trade
- Tariff shocks in 2025 severely disrupted Asia's role in global supply chains for phones, chips and clothing.
- Countries responded by diversifying markets, negotiating competitive tariff terms and balancing diplomacy with China.
India-US Trade Talks Hit Structural Limits
- India faced escalating tariff threats from the US that exposed deeper negotiation difficulties despite strong leader-level ties.
- Protection of sensitive sectors like agriculture and textiles made a swift US-India trade deal unlikely and risky for 2026.
Diversification as Diplomatic Strategy
- Countries under tariff pressure actively sought alternative partners in Latin America, the Middle East and Russia to signal options and reduce dependence.
- These diplomatic pivots are both economic hedges and political signals to the US.