US To Finalise Trade Deals With ASEAN Nations As Tariff Tensions Mount
Washington has set tariff rates of 19 to 20 per cent for most Southeast Asian nations, while Laos and Myanmar face a steeper 40 per cent levy.
The United States is preparing to conclude trade agreements with several Southeast Asian countries in the near future, US Trade Representative Jamieson Greer announced during high-level discussions in Kuala Lumpur.
His remarks came at a gathering of economic ministers from the Association of Southeast Asian Nations (ASEAN), held against the backdrop of mounting anxiety over the impact of Washington’s tariff regime on the region, reported Reuters.
Progress on Trade Negotiations
Greer said that dialogue with individual ASEAN members had been "progressing well," with some agreements already in place and more expected to be finalised "in the coming months, or even weeks for some."
Washington has set tariff rates of 19 to 20 per cent for most Southeast Asian nations, while Laos and Myanmar face a steeper 40 per cent levy. Singapore, in contrast, has been assigned a lower rate of 10 per cent.
The US has already announced agreements with Indonesia and Vietnam, though officials from both countries stress that talks are still ongoing to resolve final details. Vietnam, the sixth-largest exporter to the American market, could face losses of up to $25 billion annually due to the 20 per cent tariff on its goods, according to estimates from the United Nations Development Programme (UNDP).
ASEAN Flags Economic Risks
In a joint statement released on Tuesday, ASEAN ministers highlighted the "adverse impact and uncertainty" stemming from the tariff measures. They also warned that regional trade could decelerate in the second half of 2025, following a surge of exports earlier in the year to pre-empt the new levies.
Concerns were also raised about growing protectionist policies and unilateral actions, which they argued threatened both the global trading system and the stability of international supply chains.
Calls for Balanced Trade
Greer, in his remarks, reiterated Washington’s desire for stronger ties with ASEAN but underscored the need for fairness. "We believe that there are many areas where our interests align, and we can work together to achieve shared goals of bringing reciprocity and balance to the global trading system," he said.
Wednesday’s session was Greer’s first formal meeting with the ASEAN bloc. Up until now, most discussions had taken place on a bilateral basis, but analysts believe the prospect of harsher tariffs on specific sectors, notably semiconductors, may push the grouping to adopt a more collective stance.
Spotlight on Semiconductors
The semiconductor industry remains a particular point of concern. US President Donald Trump announced plans last month to impose tariffs of up to 100 per cent on semiconductors, though exemptions would apply to firms that are already manufacturing within the United States or have pledged to do so in the future. The sector is a vital pillar of economies such as Malaysia, Thailand, and Vietnam, raising fears that any punitive tariffs could deal a heavy blow to regional growth.
As negotiations continue, Southeast Asia finds itself weighing the immediate costs of US tariffs against the longer-term goal of safeguarding trade relations with one of its largest export markets.
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