The rising trade tensions may affect Emerging Asia through various channels, including global value chains, foreign investment, trade diversion and exchange-rate reaction, among other channels. In the near term, the speed at which exports adjust to the price shock caused by new tariffs will partly determine the impact of trade tensions on sectors and the economy as a whole. On the upside, the ongoing shifts in import sourcing present an opportunity for Emerging Asian countries to adjust their investment and export strategies. It is crucial for Emerging Asian countries to persevere in efforts to improve the investment climate in order to make the most out of these changing patterns.