ADB: Exporters in Asia severely affected by US tariff policy

Micro, small, and medium-sized enterprises (MSMEs) should build an economic foundation that serves as a stable driver of domestic growth and ensures resilience to external shocks, Albert Park, Chief Economist and Director General of the Economic Research and Development Impact Department (ERDI) of the Asian Development Bank (ADB), said during the presentation of Asian Development Bank's Asia Small and Medium-Sized Enterprise Monitor (ASM) 2025 Edition held in Baku.

"This year, we have witnessed a wave of changes in the global trade environment, particularly the increase in import tariffs in the United States and unprecedented uncertainty in trade policy. US tariffs are now at their highest level in nearly 90 years, and most Asian exporters have been hit quite hard," said Albert Park, as quoted by Report.

According to him, ASM 2025 demonstrates how countries in Asia and the Pacific are supporting MSME development.

"The report confirms that MSMEs continue to expand across the developing Asian region. Some have grown into large companies, reflecting steady growth in 2024. However, most MSMEs remain concentrated in traditional sectors-domestic trade, agriculture, simple small-scale manufacturing, subcontracting, and outsourcing. Relatively few enterprises operate in innovative service sectors or represent technology startups. National MSME development strategies should focus on supporting precisely such businesses-small technology producers and startups, as well as entrepreneurs who drive innovation," the economist emphasized.