South Korea, already burdened by sector-specific levies on steel and automobiles, is facing a 25% tariff hike on its remaining exports to the US, but is cautiously optimistic of brokering a deal.
Washington “expressed agreement” and “hoped the two sides could reach an agreement before then [August 1] through close communication”, South Korea’s national security adviser Wi Sung-lac said after meeting US Secretary of State Marco Rubio on Monday.
South Korea, one of the world’s biggest shipbuilders, agreed to “co-ordinate closely” with Washington on the industry to achieve “tangible and mutually beneficial outcomes”, he said.
Japan: Elections, rice and autos
A close US ally and the largest source of foreign investment in the country, Japan also has to deal with a 25% levy on its key auto industry.
It is now facing similar tolls on other goods, up from 24% announced in April, but better than the “30%, 35% or whatever the number is that we determine” threatened by the president last week.
Japan’s Prime Minister Shigeru Ishiba said at a cabinet meeting that the tariff set out in the letter was “genuinely regrettable”, according to local media reports.
The reason for not making a deal, he said, was “the Japanese Government has avoided making easy compromises, firmly demanding what should be demanded, protecting what should be protected, and has conducted rigorous negotiations”.
Trump has criticised Japan for not opening its market to American rice and vehicles enough.
Rice imports is a taboo topic for the Japanese Government, which claims to defend local farmers’ interests and has taken a hardline approach to talks ahead of an upper house parliamentary election on July 20.
Indonesia: Boost US wheat imports
Jakarta, facing 32% tariffs, plans to increase its agricultural and energy imports from the US to finalise an agreement, Economy Minister Airlangga Hartarto recently told AFP.
Indonesia had already announced it had signed an agreement to import at least a million tonnes of American wheat annually for the next five years, worth US$1.25b ($2.1b).
Cambodia, Myanmar, Laos: China allies face heavy levies
Trump announced 49% tariffs on Cambodia in April, representing one of the highest in his blitz. His letter to the country that hosts many Chinese-owned factories reduces this rate to 36%.
Prime Minister Hun Manet assured the White House of Phnom Penh’s “good faith” in negotiating, with reduced tariffs on 19 categories of American products.
Myanmar and Laos, which both face 40% tolls, rely heavily on Chinese investments, while their supply chains are closely intertwined with Asia’s largest economy.
Washington has repeatedly highlighted the risk of Chinese products passing through other Southeast Asian countries to avoid US tariffs targeting China, a concern mentioned in Trump’s letters.
Thailand, Malaysia: Making pledges
Thailand was told it faces 36% levies in its letter. Bangkok is offering more access to its market for American agricultural and industrial products, increasing its energy purchases, and boosting orders for Boeing aeroplanes.
Acting Prime Minister Phumtham Wechayachai told reporters Tuesday he wanted a “better deal”, adding that “the most important thing is that we maintain good relations with the US”.
Bangkok’s latest proposal aims to grow bilateral trade volumes and reduce its US trade surplus by 70% within five years, achieving balance in seven to eight years, Finance Minister Pichai Chunhavajira recently told Bloomberg News.
Thai Airways could commit to purchasing up to 80 Boeing planes in the coming years, according to Bloomberg.
Malaysia faces a 25% tariff, and the Trade Ministry said it will continue negotiations to reach a “a balanced, mutually beneficial, and comprehensive trade agreement”.
Bangladesh: Textiles at risk
The world’s second-largest textile manufacturer is looking at a 35% tariff on its goods but was hoping to sign an agreement by early July.
Textile and garment production accounts for about 80% of the country’s exports, and US firms that source products from there include Fruit of the Loom, Levi Strauss and VF Corp - whose brands include Vans, Timberland, and The North Face.
Dhaka has proposed to buy Boeing planes and boost imports of US wheat, cotton, and oil.
“We have finalised the terms,” Commerce Ministry Secretary Mahbubur Rahman told AFP, adding that negotiators were set to meet to finalise their work.
Other targeted countries
Kazakhstan (25%), South Africa (30%), Tunisia (25%), Serbia (35%), and Bosnia (30%) are among the other recipients of the letters made public by Trump.
-Agence France-Presse
