by Manal Barakat, SeaNewsEditor
In the past few weeks, and racing ahead of the tariff deadline of 1 August, key economies in Asia have been actively engaging in trade negotiations with the United States.
Below is an overview of the agreements reached so far and announced in the media.
Indonesia
In a joint statement, the US and Indonesia announced that they had reached a framework agreement on tariffs and other trade policies.
This agreement, labelled the US-Indonesia Agreement on Reciprocal Trade, includes a 19% tariff on Indonesian imports to the US, while Indonesia will eliminate levies on 99% of US imports.
The deal also covers various provisions related to industrial, agricultural, and digital trade, economic security, and labour and environmental regulation.
Japan
A key deal was also announced on 22 July with Japan.
Reuters reported that the US has struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from new levies on other goods.
In exchange, Japan has agreed to a USD 550 billion package of US-bound investment and loans.
The deal reduces tariffs on Japan's auto sector to 15% from 27.5% and cuts duties on other Japanese goods to 15% from 25%, reports Reuters.
Malaysia
While there is no news about an official deal, Malaysia is negotiating with the US to secure a 20% tariff rate, aiming to align its tax rates with those of its regional neighbours.
In a recent report, Bloomberg writes that Malaysia has rejected US demands to open its electric vehicle market and amend foreign land ownership laws.
The country's Prime Minister Anwar Ibrahim is pushing for a tariff reduction below the 25% threshold, effective 1 August, while also addressing US concerns over illicit semiconductor imports.
Philippines
Meanwhile, President Donald Trump announced a trade agreement with the Philippines following a meeting with President Ferdinand Marcos Jr. at the White House.
According to the New York Times, the deal imposes a 19% tariff on Philippine exports to the US, while American goods entering the Philippines will face zero tariffs.
Additionally, the countries have agreed to expand their military cooperation.
Vietnam
The BBC reported that a new trade deal between the US and Vietnam will impose 20% tariffs on Vietnamese imports, down from the previously planned 46%.
Vietnam will charge no tariffs on US products under this agreement.
The deal also includes a steeper 40% tariff on goods transshipped through Vietnam.
Kuehne+Nagel follows the developments closely and will report updates as they become available. Customers can also check the latest updates on our global trade and tariffs page.
