Southeast Asia to step up US trade talks over Trump's new tariffs

Arab News

8 hours ago

JAKARTA: Officials in Southeast Asian countries prepared on Tuesday to step up trade negotiations with Washington after President Donald Trump's administration hit some of them with over 30 percent tariffs, despite a raft of new concessions and offers to boost investment in the US.
Trump sent letters on Monday to over a dozen nations, notifying them of new tariff rates set to begin on Aug. 1. About half were heavily export-reliant Southeast Asian economies.
In Indonesia, the region's largest economy, Trump's announcement came despite last week's offer to increase imports of US wheat, soybean, cotton, corn and energy products in a deal that could go as high as $34 billion, and to boost investment in the US.
Jakarta has immediately sent Airlangga Hartarto, its top negotiator and senior economics minister, to Washington to hold talks with US officials.
'We have a team of negotiators ready in Washington, D.C., and our coordinating minister for economic affairs is on his way to D.C.,' Hasan Nasbi, head of the presidential communications office, told reporters in Jakarta on Tuesday afternoon.
'With the date extended to Aug. 1, it means we have a few weeks' opportunity to negotiate, and our government is very optimistic about these negotiations as we have good relations with all countries, including the US.'
Trump said in a Truth Social post on Sunday that countries 'aligning themselves with the Anti-American policies of BRICS, will be charged an additional 10% Tariff. There will be no exceptions to this policy.'
The post followed Sunday's summit of BRICS — a geopolitical forum that includes Russia, China, India, and Indonesia — which condemned Trump's tariffs.
The US is Indonesia's second-largest export market after China, with exports valued at around $26.3 billion in 2024, according to data from Indonesia's Central Statistics Agency. Last year, Indonesia ran a $16.8 billion goods trade surplus with the US.
Also, Thailand is facing a tariff rate of 36 percent, despite offering to cut levies to zero on many US imports last week.
'The United States has not yet considered our latest proposal,' Thai Finance Minister Pichai Chunhavajira wrote on X.
'We will not stop; we will keep fighting. We will seek additional measures and find more solutions to ensure that we all fight to the very end, to secure the best possible deal for Thailand.'
In 2024, Thailand's shipments to the US accounted for 18.3 percent of its total and were worth about $54.96 billion last year, making the US the country's biggest export market.
Malaysia, for whom the US is the second-largest trading partner after China, and the largest export destination — with total trade worth $71.4 billion in 2024 — faces a 25 percent tariff rate.
Its Trade Minister Tengku Zafrul Aziz said the country 'remains committed to constructive engagement' with the US.
'While we understand concerns regarding trade imbalances, we believe that dialogue and engagement are the best approach,' he wrote on X.
'(Malaysia's Trade Ministry) will continue discussions with U.S. counterparts to address unresolved issues. Our goal is to achieve a balanced, mutually beneficial, and comprehensive trade agreement.'