Moody's: Tariffs and trade uncertainty increase credit risk in the Asia-Pacific region.

Moody's rating agency stated that tariffs and global trade uncertainty have increased credit risks in the Asia-Pacific region, leading the company to downgrade the sovereign credit outlook from stable to negative. Tariffs have brought long-term credit risks to some Asia-Pacific economies, damaging their attractiveness and hindering foreign investment. Fiscal expenditures may increase to aid economic growth, slowing or halting fiscal consolidation. Decreased revenues - especially for trade-intensive countries - will further limit flexibility, while widening deficits will increase borrowing needs. If trade negotiations significantly reduce tariffs, Moody's will revise the outlook back to stable. On the other hand, escalating tariffs, significant interest rate hikes, or prolonged geopolitical conflicts will worsen the situation.