U.S. Aims to Finalize Southeast Asia Trade Deals, Tariffs Impact Regional Exports

The United States is expected to finalize trade agreements with several Southeast Asian nations within the next few weeks. The current administration's policies, led by the President, are driving negotiations aimed at reducing tariffs.

In a meeting with ASEAN economic ministers in Kuala Lumpur, the U.S. Trade Representative expressed pride in the collaborative efforts on these agreements, anticipating that some deals could be finalized within the next few months or even weeks. This high-level meeting marks the first since the U.S. implemented its "reciprocal tariffs" in August.

Prior to the tariffs taking effect, the region saw a surge in exports as businesses rushed shipments and shifted some manufacturing from China to Southeast Asia. However, this growth trend is expected to reverse as the tariff policies fully take hold.

Several countries are currently negotiating with the U.S. to lower tariff rates and simplify trade conditions, but the details of these agreements are still being finalized. Following the release of a preliminary agreement in July, Vietnamese officials have urged the U.S. to reconsider a ruling on seafood imports within a broader trade negotiation framework.

In other parts of Asia, Korean officials are facing hurdles related to visa issues and automotive tariffs, a critical sector for Korea's exports to the U.S. Despite increased diplomatic interactions, the U.S. and China have yet to reach a trade agreement.

The U.S. Trade Representative emphasized the importance of balanced and reciprocal trade, stating, "Of course, we welcome trade. But we want it to be balanced and reciprocal."

Southeast Asia has shown resilience in the face of tariff impacts, leading some economists to upgrade their growth forecasts for the region. Manufacturing activity, exports, and domestic economic drivers continue to fuel growth in most countries. However, there are exceptions: Malaysia, the host of this week's ASEAN meeting, saw its exports to the U.S. drop by 17% in August, despite an overall increase in exports to other global regions.