Asian Markets fall due to increasing US-China trade tensions, experts have warned.   Asian stock markets such as Taiwan, South Korea, and Southeast Asia closed lower in afternoon trade on Wednesday due to the trade war between China and the United States.

Those economies are known as the largest exporters of “intermediate goods” to China which then makes finished products out of those pieces to ship to final destinations such as the U.S., according to Capital Economics’ senior Asia economist, Gareth Leather.

Initially, the “intermediate goods” such as semiconductor chips and screens are typically manufactured in different locations across Asia. Then various regions send those components to China for assembly into products like a mobile device, computers, and other items.

Both U.S and China have threatened to impose tariffs on each other’s products, moving closer in a growing trade war. However, the list of final products under the tariffs is not yet announced.

Experts are raising concern for emerging markets, including those in Asia as they are beaten by capital outflows and have been struggling with waken currencies. US-China trade tensions initially declared by U.S. President Donald Trump could affect these markets, the J.P. Morgan analyst notes.

“U.S. consumers would struggle to find sufficient substitutes to replace the goods that they currently buy from China, at least in the short-term. What’s more, to the degree that other countries can step in, Asian exporters are well-placed to benefit from any shift in U.S. demand,” J.P. Morgan said.

“Until we know exactly which goods are targeted, it will be impossible to calculate the impact on the rest of Asia,” he concluded.