SINGAPORE, Sept. 8 (Xinhua) -- Advanced manufacturers in Asia, such as Singapore, have absorbed more than 20 percent of U.S. tariff costs, financial services group Nomura said in a report cited by local media on Monday.
The Japanese group said Asian exporters are shouldering about one-fifth of U.S. tariffs and passing the rest to buyers, with sharp differences across countries.
Singapore, with advanced manufacturing and high-value exports, has a greater capacity to absorb the costs, while other ASEAN nations absorbed none, Nomura said.
The divergence shows that advanced manufacturers with pricing power can absorb tariff costs, while producers in lower-value sectors lack such flexibility, Nomura analysts said.
Globally, exporters are bearing nearly 25 percent of tariff costs, Nomura noted, after examining U.S. import price and Asian export price indices from January to July.
Looking ahead, Asia faces a "double whammy": exporters must keep prices low to stay competitive in the United States while contending with stronger local currencies. That leaves them choosing between passing on higher costs, risking U.S. market share, or absorbing them and hurting profitability. ■
