From Malaysia to Bangladesh, Asia’s countries are more concerned about the letters sent by Donald Trump on Monday, to mean a 25 to 40%surcharge, if not signed on August 1.
They are remarkably attacked by countries with the most unbalanced exchanges: Japan (68.5 billion dollars in commercial surpluses with the United States in 2024), South Korea (66 billion), Thailand (45.6 billion), Indonesia (17.9 billion) …
General description of the first reactions and current talks.
South Korea: The bet of the shipyards
Already heavy by the sector surcharge aimed at steel and the car, Seoul is threatened with a 25% increase in the rest of its exports, but shows a cautious optimism.
South Korea, naval construction champion after China, promises their cooperation in naval construction: “The two countries have agreed to collaborate closely” for “tangible results” in this sector.
Japan: in electoral periods, rice block and cars
The nearby ally of Washington and the first source of foreign investment in the United States, which already suffers from 25% rights in its automotive industry, Japan could reach “reciprocal” surcharge observed in 25% (compared to 24% previously), far from 35% of which Mr. Trump had recently threatened.
Donald Trump criticizes Japan for not opening his market enough to rice vehicles and Americans.
However, the inflation of rice imports is a taboo for the government of Prime Minister Shigeru Ihiba, who claims to defend the interests of local farmers and adopt an uncompromising tone before an election in the upper chamber of Parliament on July 20, dangerous for its majority.
Indonesia: Doping American Wheat Imports
Indonesia, threatened with 32%of the rights, intends to increase its agricultural and energy imports from the United States to conclude an agreement, its Minister of Economy Airlangga Hartarto told AFP.
Yakarta has already announced Monday to sign an agreement to import at least one million tons of American wheat per year over the next five years.
Cambodia, Burma, Laos: Pékin partners very taxed
In early April, Donald Trump announced 49% of the rights over Cambodia, one of the highest rates decreed. Monday’s letter carries this 36% rate for the small country, which has many Chinese capital factories.
Prime Minister Hun Manet had assured the White House of the “good faith” of Phnom Penh to negotiate, with the reduction of customs duties in 19 categories of American products … Shortly before a visit with great fanfare of Chinese President Xi Jinping in the country.
Burma and Laos, both taxed at 40%, depend a lot on Chinese investments, with production channels entangled with those of the Asian giant.
Washington insistently points to the risk of “transford” of Chinese products that pass through other countries in Southeast Asia, a concern mentioned in Donald Trump’s letters.
Thailand: towards a “better agreement”?
Thai interim prime minister Phumtham Wechayachai said Tuesday that he wanted a “better agreement” with the United States. “The most important thing is that we maintain good relations with them,” he added.
Thailand, threatened with rights of 36%, offers better access to its market for American agricultural and industrial products and inflating its energy and aeronautical purchases.
The last Bangkok proposal aims to increase the volume of bilateral exchanges and reduce commercial surplus with the United States by 70% in five years, reaching balance within seven to eight years, Finance Minister Pichai Chunhavajira, recently told Bloomberg News.
Thai Airways could commit to buy up to 80 Boeing aircraft, according to Bloomberg.
Malaysia: In search of a “balanced” agreement
Malaysia, an economy divided between China and the United States and 25%, said Tuesday “undertakes to continue the dialogue for a balanced commercial agreement, mutually beneficial and global.”
Bangladesh: in danger
Bangladesh, the second world textile manufacturer, is threatened with 35%of prohibitive rights. The textile industry contributes to 80% of the number of exports in the country in southern Asia. A fifth of its production is intended for the US market, which is sold in brands such as Timberland, Vans or North Face
Dacca, however, waited at the beginning of July to sign an agreement. “We have finished the terms,” said AFP, the secretary of the Ministry of Commerce of Bangladais Du, Mahbubur Rahman, adding that the negotiators of the two countries would meet on July 8 to conclude their work.
Other directed countries
Kazakhstan (25%surcharge), South Africa (30%), Tunisia (25%), Serbia (35%) and Bosnia (30%) are among the other recipients of letters in public.
Source: BFM TV
