Japan and South Korea will seek to negotiate lower US reciprocal tariffs of 24% and 25%, respectively, instead of retaliating, ING said in a Thursday note, adding that both are likely to offer concessions such as increased US imports or investments.
While semiconductors and pharma are exempt, machinery and heavy industry will be hit hardest. ING said the tariffs pose downside risks to both economies.
ING still expects a Bank of Japan rate hike in May but sees a risk of delay.
For the Bank of Korea, ING sees a possible rate cut in May, depending on political and foreign exchange market developments.
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