The Latest on Southeast Asia: Trump’s Pause on Reciprocal Tariffs in Southeast Asia

On April 9, President Donald Trump announced a 90-day pause on “reciprocal tariffs” over 10 percent, except those on goods from China, which had roiled markets after taking effect early that morning. Trump had announced the tariffs a week earlier, saying nearly all goods entering the United States would face a minimum tariff rate of 10 percent while those from 60 countries, territories, and the European Union, which he dubbed the “worst offenders,” would face higher rates based on the scale of their trade surpluses with the United States. That included all Southeast Asian states except Singapore. Their exports to the United States will now all face a 10 percent tariff for the next three months. 

The Trump administration paused the tariffs after claiming that 75 countries had approached the president to negotiate. Among those confirmed to have reached out were some of the Southeast Asian countries targeted with particularly high rates: Vietnam (46 percent), Indonesia (32 percent), Thailand (36 percent), and Cambodia (49 percent). 

Following the initial announcement of the reciprocal tariffs, Malaysian prime minister and ASEAN chair Anwar Ibrahim urged ASEAN to participate in a unified response. And the night before Trump paused his tariffs, ASEAN economic ministers agreed to develop an ASEAN-U.S. economic cooperation framework through “frank and constructive dialogue” with the United States. 

Communist Party of Vietnam General Secretary To Lam was the first and only Southeast Asian leader to speak directly with Trump about the tariffs. Trump described that call as “very productive” and said Vietnam had offered to reduce tariffs on U.S. goods to zero. The Vietnamese government confirmed that the two countries will sign a bilateral agreement addressing the tariffs and that Trump has accepted an invitation to visit Vietnam. Since the phone call, Vietnam has vowed to review its monetary policy, exchange rate, and non-tariff barriers.  

Indonesia is seeking to negotiate and will send a delegation of high-level economic officials to Washington led by Coordinating Minister for Economic Affairs Airlangga Hartarto. The government of President Prabowo Subianto will reportedly offer to buy more U.S. products, resolve non-tariff barriers, and cut taxes on U.S. goods.  

The Thai government is also seeking a deal and Prime Minister Paetongtarn Shinawatra confirmed a scheduled meeting with United States Trade Representative Jamieson Greer. The country has agreed to increase imports from the United States, lower taxes on some U.S. goods, and address non-tariff barriers.  

Cambodian prime minister Hun Manet has written a letter to Trump urging him to reconsider the 49 percent tariff on Cambodia, which would be the third-highest in the world after China and Lesotho. The country has proposed reducing tariffs on 19 U.S. goods to 5 percent from 35 percent.  

While Trump’s reciprocal tariffs are currently on pause, many Southeast Asian nations continue to take precautionary measures in the face of a turbulent trade landscape. The baseline 10 percent tariffs on all Southeast Asian goods remain in place and the bilateral U.S.-China trade war continues to escalate with knock-on effects across the global economy. Prime Minister Paetongtarn, for instance, advised Thai exporters to diversify markets to minimize risks. And manufacturers in Cambodia are looking to move supply chains to other countries to mitigate potential tariffs. The regional and global trade landscape will remain uncertain, regardless of the bilateral concessions Southeast Asian governments might make. 

Gregory B. Poling is a senior fellow and director for the Southeast Asia Program and the Asia Maritime Transparency Initiative at CSIS. Lauren Mai is a Program Coordinator and Research Assistant for the Southeast Asia Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C.

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Gregory B. Poling
Director and Senior Fellow, Southeast Asia Program and Asia Maritime Transparency Initiative
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Lauren Mai
Program Coordinator and Research Assistant, Southeast Asia Program