Flurry of US trade deals offers relief for some Asian countries, while others wait

Bangkok: US President Donald Trump has announced trade deals with Japan and a handful of other Asian countries that will relieve some pressure on companies and consumers from sharply higher tariffs on their exports to the United States.

A deal with China is under negotiation, with US Treasury Secretary Scott Bessent saying an August 12 deadline might be postponed again to allow more time for talks.

Steep tariffs on US imports of steel and aluminum remain, however, and many other countries, including South Korea and Thailand, have yet to clinch agreements. Overall, economists say the tariffs inevitably will dent growth in Asia and the world.

Trump and Japanese Prime Minister Shigeru Ishiba announced a deal Wednesday that will impose 15 per cent tariffs on US imports from Japan, down from Trump’s proposed 25 per cent “reciprocal” tariffs.

It was a huge relief for automakers like Toyota Motor Corp and Honda, whose shares jumped by double digits in Tokyo. Trump also announced trade deals with the Philippines and Indonesia.

After meeting with Philippine President Ferdinand Marcos, Jr, Trump said the import tax on products from his country would be subject to a 19 per cent tariff, down just 1 per cent from the earlier threat of a 20 per cent tariff.

Indonesia also will face a 19 per cent tariff, down from the 32 per cent rate Trump had recently said would apply, and it committed to eliminating nearly all of its trade barriers for imports of American goods.

Earlier, Trump announced that Vietnam’s exports would face a 20 per cent tariff, with double that rate for goods transshipped from China, though there has been no formal announcement.

Negotiations with China are subject to an August 12 deadline, but it’s likely to be extended, Bessent said on Tuesday. He said the two sides were due to hold another round of talks, this time in Sweden, early next week. A preliminary agreement announced in June paved the way for China to lift some restrictions on its exports of rare earths, minerals critical for high technology and other manufacturing.

In May, the US agreed to drop Trump’s 145 per cent tariff rate on Chinese goods to 30 per cent for 90 days, while China agreed to lower its 125 per cent rate on US goods to 10 per cent.

The reprieve allowed companies more time to rush to try to beat the potentially higher tariffs, giving a boost to Chinese exports and alleviating some of the pressure on its manufacturing sector. But prolonged uncertainty over what Trump might do has left companies wary about committing to further investment in China.

Pressure is mounting on some countries in Asia and elsewhere as the August 1 deadline for striking deals approaches.

Trump sent letters, posted on Truth Social, outlining higher tariffs some countries will face if they fail to reach agreements. He said they’d face even higher tariffs if they retaliate by raising their own import duties.

South Korea’s is set at 25 per cent. Imports from Myanmar and Laos would be taxed at 40 per cent, Cambodia and Thailand at 36 per cent, Serbia and Bangladesh at 35 per cent, South Africa and Bosnia and Herzegovina at 30 per cent and Kazakhstan, Malaysia and Tunisia at 25 per cent.