The United States Trade Representative Jamieson Greer announced on Wednesday (September 24th) that in the coming months, new trade agreements will be reached with various Southeast Asian countries successively. If negotiations proceed smoothly, some agreements may be finalized within a few weeks.
On Wednesday, Greer attended the 57th ASEAN Economic Ministers’ Meeting (AEM) to negotiate with representatives from various countries. Given the impact of U.S. tariffs on Southeast Asian export-oriented economies, this meeting became a major focus of this year’s ASEAN Economic Ministers’ Meeting.
Greer stated that the purpose of the discussions is to strengthen trade and investment relations. “President Trump and I are proud of the work we have done together on these agreements and expect to finalize them in the coming months — even within weeks for some countries,” he said. “We certainly welcome trade,” he added, “however, we want it to be balanced and reciprocal.”
Currently, most countries in Southeast Asia have tariff rates set at 19% to 20%. Laos and Myanmar have rates of 40%, while Singapore has a rate of 10%. Facing tariff impacts, Southeast Asian countries heavily reliant on exports hope to attain lower rates and more lenient trade conditions.
According to the United Nations Development Programme (UNDP), Vietnam is estimated to be the most affected among all Southeast Asian countries. As the sixth largest exporter to the U.S. globally, Vietnam may face losses of up to $25 billion annually due to the imposed 20% tariff.
Several countries are still in negotiations with the U.S., aiming to reduce tariffs or secure better trade conditions, with final agreement details yet to be determined. Vietnamese officials also hope the U.S. will reconsider its decision on seafood imports.
Despite facing high tariffs, Southeast Asia has demonstrated unexpected resilience, leading some economists to revise their economic growth forecasts upwards. Manufacturing activities, exports, and domestic demand continue to drive growth in most economies in the region. However, there are exceptions, such as Malaysia, which hosted the ASEAN meeting and saw a 17% decline in exports to the U.S. in August.
Wednesday marked Greer’s first meeting with the ASEAN as a whole. While most ASEAN member countries have chosen to negotiate individually with the U.S. on tariff issues, the semiconductor industry’s potential higher tariff risks may lead to a more unified stance by ASEAN.
Last month, President Trump announced plans to impose tariffs of around 100% on semiconductor imports, except for companies already producing in the U.S. or committed to building factories in the U.S.