Asia had a strong 2025, despite the doom and gloom surrounding Trump’s “Liberation Day” tariffs. The ASEAN+3 region—which consists of Southeast Asia, China, Japan, and South Korea—defied protectionist headwinds to grow 4.3% last year, beating initial projections from the ASEAN+3 Macroeconomic Research Office (AMRO) released right after the tariff shock.
Now the Iran war poses a new threat to Asia. The closed Strait of Hormuz has disrupted global supply chains and choked energy supplies, particularly for Asia, which buys more than 80% of the oil and gas that passes through the narrow waterway.
