The Asia-Pacific Trade and Investment Report (APTIR) 2018 by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) notes an accelerated imposition of restrictions on trade in goods and services, and more reservations on Foreign Direct Investment (FDI). The United States-China trade tensions have also begun to disrupt existing supply chains and dampen investor confidence, as evidenced by the deceleration in trade growth after the first half of 2018. If the trade tensions remain, export growth may slow to 2.3 per cent in 2019, compared to a nearly 4 per cent growth in export volume in 2018. FDI inflows to the region are also expected to continue in their downward trend next year, following a 4 per cent drop in 2018.

Tariff hikes are expected to cut global GDP by $150 billion, and regional GDP by a little over USD40 billion. Importantly, as many of the main export industries in the region are relatively labor-intensive, a contraction of export could spell at least temporary hardship for many workers. At a minimum, Asia and the Pacific will see a net loss of 2.7 million jobs due to the trade war, with unskilled workers -often women- shouldering more severe impact.