US tariffs will be disruptive but ‘markets will equilibrate’, Standard Chartered CEO says

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‘Globalisation is going forward. Trade remains enormously beneficial to the world, and everybody understands that,’ Winters says

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Standard Chartered CEO Bill Winters in Hong Kong. Photo: Edmond So

Mia Castagnone

Published: 4:30pm, 28 Nov 2024Updated: 5:01pm, 28 Nov 2024

China will make changes to its system of trading if the Trump administration follows through with its tariff threats and while markets will be disrupted, business will go on, according to Standard Chartered CEO Bill Winters.

“Things could get disruptive, [however] markets will equilibrate, and if one country imposes a tariff on another, then trade will reroute,” Winters said during a recent visit to Hong Kong.

“Lots of commitments were made during [the US presidential] campaign, which, directionally, I’m sure will be honoured.”

The London-based bank, which generates much of its income in Asia, is betting on its capabilities in cross-border transactions and investments to drive growth in the coming years, along with wealth management to cater to Asia’s growing cohort of affluent customers.

With another trade war on the horizon, a number of Chinese companies have already moved their manufacturing facilities to Southeast Asia. There, Chinese companies can ship their goods onwards to the US to avoid tariffs. The reshoring process kicked off during Trump’s first term, when US tariffs on Chinese exports climbed as high as 25 per cent. Neighbouring countries like Vietnam and Thailand quickly became buzzing factory hubs.

An aerial view of a port in Qingdao, China. Photo: Chinatopix via AP

In Vietnam, China was the top direct investor, capturing 29.7 per cent of all new projects during the first seven months of this year.