US Grants 0% Tariffs to Three ASEAN Nations Under New Trade Pacts
Washington lifts duties on select goods from Thailand, Malaysia, and Cambodia following the ASEAN Summit, aiming to boost regional trade.
- The United States has granted 0% import tariffs on specific products from three ASEAN countries: Thailand, Malaysia, and Cambodia.
- Malaysia's tariff exemption applies to its aerospace equipment, pharmaceutical, and key commodity (palm oil, cocoa, rubber) sectors.
- Thailand received 0% tariffs on select items as part of a reciprocal deal, committing to purchase over $20 billion in US agricultural products, energy, and aircraft.
- The new 0% tariff policy reverses a previously imposed 19% retaliatory tariff on the three nations.
The United States has officially approved a 0% import tariff for specific products originating from three key members of the Association of Southeast Asian Nations (ASEAN): Thailand, Malaysia, and Cambodia.
The decision, formalised under new agreements, was announced during the recent ASEAN Summit in Kuala Lumpur.
President Donald Trump authorised the tariff exemption measures, reversing an earlier imposition of a reciprocal 19% retaliatory tariff that had affected the nations.
The approval, reported by the news agency DetikFinance, means a variety of goods from the three Southeast Asian countries will now be able to enter the US market duty-free.
This trade concession is seen as a significant move by Washington to deepen economic cooperation and promote trade diversity across the region.
Thailand’s Reciprocal Deal
Thailand and the US reached a “Reciprocal Trade” Framework Agreement designed to expand bilateral economic ties and investment.
Under the terms of the deal, Thailand committed to purchasing US agricultural products, energy supplies, and aircraft valued at over $20 billion USD.
In return, Bangkok agreed to scrap tariffs on nearly 99% of US goods. While the US retained its 19% retaliatory customs tariff on most products, it granted a 0% tariff status to certain selected Thai items.
Details concerning which Thai products are included in this exemption have not yet been released.
Malaysian Sectors Benefit
Meanwhile, Malaysia secured 0% tariffs for three crucial product sectors.
Tengku Zafrul Aziz, Malaysia’s Minister of International Trade and Industry, confirmed the exemption applies to:
- Aerospace Equipment
- Pharmaceuticals
- Key commodities, including palm oil, cocoa, and rubber
The move is expected to significantly enhance Malaysia’s export competitiveness and strengthen its commercial relationship with the US.
Indonesia Seeks Similar Terms
Neighbouring Indonesia is also actively negotiating for similar benefits.
Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that trade talks are intense following a recent delay due to a US government shutdown, with a conclusion expected within a few weeks.
"The principle is that this agreement will apply to goods that can be grown in Indonesia but cannot be grown in the United States," said Hartarto. "So, for products like palm oil, cocoa, and chocolate, they offered a 0% tariff."
