Tariff pressure pushes ASEAN countries to negotiate with US

At Long Beach port in California (Photo: Xinhua)

Hanoi (VNA) – US Trade Representative Jamieson Greer on September 24 announced that the US expects to finalise trade agreements with several ASEAN member states in the coming months.

Speaking in Kuala Lumpur, Malaysia, in a meeting with ASEAN economic ministers, Greer said tariff negotiations with individual countries in the region are making progress, with some deals possibly being concluded within months or even weeks. He added that the US and ASEAN economies share many common interests and can work together toward the shared goal of ensuring reciprocity and balance in the global trading system.

ASEAN countries have been facing high tariff rates imposed by the US government and are concerned about their impacts, particularly for export-dependent economies. Most of the region is subject to reciprocal tariffs of 19 – 20%, with Laos and Myanmar facing rates as high as 40%, while Singapore enjoys the lowest tariff at 10%.

This marked Greer’s first meeting with the bloc as a whole after a period of bilateral tariff negotiations with individual member states. Observers noted that the US government’s planned sector-specific tariff hikes – particularly in the semiconductor industry – could drive ASEAN to adopt a more unified position in talks with the US.

Investment bank Maybank Bhd (Maybank IB) highlighted that Malaysia’s exports to the US fell in August, marking the first decline since December 2023. The drop came after the 19% reciprocal tariff rate was finalised at the end of July and took effect on August 7.

Meanwhile, Payong Srivanich, Chairman of the Thai Bankers’ Association, stated that the 19% reciprocal tariff applied to Thai goods helped the country avoid the worst-case scenario of losing competitiveness compared to neighbouring countries, which are facing similar tariff levels./.

VNA