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Tariffs

Trump's Southeast Asia Trade Deals Leave Many Questions Unanswered

Strategic Insights

— 2 min read

US President Donald Trump's visit to the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur resulted in several trade deals with the region's leaders. However, many questions remain about the implications of these agreements and how the region will fare under Trump's shifting trade policies. The deals with Malaysia, Thailand, Cambodia, and Vietnam involve US tariff rates ranging from 19 to 20 percent, with concessions from the Southeast Asian countries to reduce non-tariff barriers to US trade. The agreements also include commitments to buy billions of dollars' worth of US agricultural exports and offer concessions on digital services.

Key Takeaways:

  • The US tariff rates for Malaysia, Thailand, Cambodia, and Vietnam range from 19 to 40 percent, with exemptions for some key exports in the Malaysia-US deal.
  • The agreements do not mention semiconductors, a key export for Malaysia, or specify country-of-origin rules, despite the threat of tariffs on goods with multiple countries of origin.
  • The deals involve commitments to reduce non-tariff barriers to US trade, with Cambodia and Thailand pledging to eliminate tariffs on 100 percent and 99 percent of US imports, respectively.
  • Malaysia, Thailand, and Vietnam committed to buying billions of dollars' worth of US agricultural exports, US-made aircraft, and offering concessions on digital services.
  • Kuala Lumpur pledged a further $70bn in capital investment in the US, while Thailand and Malaysia signed separate memorandums of agreement to cooperate on supply chains of rare earths and other critical minerals.
  • The Malaysia-US deal provides a zero percent tariff on some of Malaysia's key exports, including palm oil, rubber, and cocoa.
  • The enforcement of the trade deals is unclear, as they are not free trade agreements in the traditional sense, but rather enforced through the threat of more punitive tariffs if a country doesn't live up to agreed commitments.

Statistics:

  • US tariff rates for Malaysia, Thailand, Cambodia, and Vietnam range from 19 to 40 percent.
  • Malaysia secured a zero percent tariff on some of its key exports, including palm oil, rubber, and cocoa.
  • Malaysia, Thailand, and Vietnam committed to buying billions of dollars' worth of US agricultural exports.
  • Kuala Lumpur pledged a further $70bn in capital investment in the US.
  • Cambodia and Thailand pledged to eliminate tariffs on 100 percent and 99 percent of US imports, respectively.

Sources:

  • Al Jazeera: "US Trade Deals with Southeast Asia Leave Many Questions Unanswered"
  • Mark Schiefelbein/AP: "President Donald Trump meets with Malaysia's Prime Minister Anwar Ibrahim on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia, on October 26, 2025"
  • Institute of Strategic & International Studies: Jaideep Singh, analyst
  • Asia Decoded: Priyanka Kishore, director and principal economist
  • ISEAS-Yusof Ishak Institute: Jayant Menon, senior fellow

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