For their part, ASEAN members have been eagerly courting U.S. President Donald Trump. The deadline for a reprieve on his administration’s big, ugly tariff threats is whizzing by fast. The 90-day halt on these “reciprocal” tariffs expires on Wednesday. Since the start of July, this standstill has forced ASEAN countries to rush into advantageous arrangements with Washington.
So far, Vietnam and Indonesia are setting the pace in negotiations with the United States. Both countries are presently engaged in negotiations over possible trade concessions that might reduce the damage from expected tariff hikes. The baseline for these “reciprocal” tariffs is 10%. With the suspension set to expire soon, most ASEAN countries are eager to wrap up deals to ensure their access to lower tariffs from Trump’s administration.
In a bid to demonstrate goodwill, Southeast Asian countries have begun purchasing dozens of Boeing planes and increasing imports of U.S. soybeans. These actions show a renewed dedication to American trade interests. Their goal is to keep Trump from raising tariffs even higher, which would devastate their economies. The urgency of these moves is definitely warranted. How many of these tariff pauses are being received by countries around the world?
It’s not the case that every ASEAN country is enjoying such easy negotiating. Thailand’s persistent political turmoil has made it difficult for Bangkok to address the concerns necessary to work effectively with Washington. This precariousness has made it difficult for Thailand to proceed with the major concessions that would be needed. By doing so, it threatens to leave itself behind other ASEAN members in competing for the best terms in future trade deals.
As the approaching deadline draws near, ASEAN countries are increasingly on the defensive. They need to strike deals fast to appease President Trump and protect their national economies from the imminent threat of tariff hikes. The collective goal remains clear: to avoid the repercussions of heightened tariffs and maintain strong trade relationships with the U.S.