Southeast Asia Reacts to New US Tariffs, Vows to Negotiate
Washington D.C. – Several Southeast Asian nations are responding to newly imposed tariffs announced by the United States, with officials expressing shock and a commitment to further negotiations. The tariffs, impacting Laos, Myanmar, Cambodia, Thailand, Malaysia, and Indonesia, come despite recent efforts by these countries to secure more favorable terms with Washington.
Indonesia and Thailand are facing tariff rates of 32% and 36% respectively – the same levels threatened by former President Trump in April. These rates were maintained despite late-stage proposals from both nations, including commitments to increase purchases of US goods and eliminate tariffs on a range of American imports.
Thai Finance Minister Pichai Chunhavajira stated he was “a little shocked” by the rate assigned to Thailand, but affirmed his country’s dedication to securing a better deal with its largest export market.”The US has not considered our latest proposal,” he posted on X. “We will find more measures and find more solutions. So be confident we will fight to the end, so that Thailand will have the best offer possible.”
Malaysia, a significant exporter of semiconductors and electronics, will now face a 25% levy, an increase from the previously threatened 24%.The country’s trade ministry indicated ongoing efforts to negotiate and clarify the scope of the tariffs, reiterating “Malaysia is committed to continuing engagement with the US towards a balanced, mutually beneficial, and comprehensive trade agreement.”
The broader tariff announcements followed a trade pact unveiled last week between the US and Vietnam, resulting in a 20% levy on most Vietnamese exports and 40% on transshipped goods.
Indonesia, the largest economy in Southeast Asia, is dispatching its top negotiator, Airlangga Hartarto, to Washington instantly following a BRICS summit in Brazil. “There is still space for negotiations,” stated Haryo Limanseto, a spokesperson for the coordinating ministry of economic affairs. “The Indonesian government is maximising those negotiation chances.” Indonesia has already offered substantial concessions, including increased investment opportunities in the US and potential purchases of US energy, commodities, and aircraft valued up to $34 billion.
Though, the tariffs pose a significant risk to Indonesia’s palm oil industry, the world’s largest, which supplies approximately 85% of US palm oil imports.Industry representatives estimate US shipments could decline by 15-20%, perhaps leading to market share losses to Malaysia and other vegetable oil producers.
Thailand, the world’s second-largest rice exporter, anticipates a potential 20% reduction in US demand, facing increased competition from Vietnam.
Cambodia is among the few nations to see a reduction in tariffs, falling to 36% from 49% following discussions aimed at protecting its crucial garment and footwear industries.
