Asian Countries Respond to "Trump's Tariff Suspension": Remaining Tariffs Still an Issue

Asian governments and industry associations, including ASEAN, Japan, and South Korea, welcomed US President Trump's emergency extension of some "reciprocal" tariffs under pressure, but also warned that the large number of "Trump tariffs" still in effect will continue to prolong the uncertainty faced by regional businesses and financial markets.

As a backdrop, Asia, as the global manufacturing center, has been specifically targeted by Trump's "reciprocal tariffs." Cambodia and Vietnam face reciprocal tariff rates of 49% and 46%, respectively, while Thailand and Indonesia face rates exceeding 30%, and Japan, South Korea, and Malaysia are subject to additional tariffs of over 20%.

Even after the policy rollback on Wednesday, the US still imposes a general "reciprocal" tariff rate of 10% on most trading partners, along with tariffs on steel, aluminum, and automobiles, as well as a 125% tariff on China. According to estimates, the US average tariff rate remains at nearly 24%, compared to about 2% when Trump took office

.

ASEAN strongly criticizes Trump tariffs

On Thursday local time, ASEAN economic ministers held a video conference and issued a statement collectively criticizing Trump's policies.

(Source: ASEAN) The statement indicated that

these tariffs would disrupt regional and global trade, investment flows, and supply chains, affecting economic security and stability, impacting the livelihoods of millions in the region, hindering economic progress in ASEAN, especially in underdeveloped economies, and straining ASEAN-US economic and trade relations. The ASEAN ministers also reiterated their support for a predictable, transparent, free, fair, inclusive, sustainable, and rules-based multilateral trading system centered on the World Trade Organization (WTO), and acknowledged the WTO's critical role in promoting global economic growth.

Malaysian Minister of International Trade and Industry, Zafrul, who chaired the meeting, also commented during the ministers' discussion on the trade war: "On the issue of Trump tariffs, the only certainty is uncertainty."

In a media interview the same day, Zafrul also stated that while ASEAN countries welcomed Trump's suspension of higher tariffs, the 10% base tariff and the current 125% tariff on China would still impact the global economy and trade, including Malaysia. This volatility poses significant challenges to ASEAN economies

. ASEAN Business Advisory Council Chairman Nasir Razak also warned about the current developments. He said: "Great uncertainty still exists, making it difficult for businesses to cope. Given the recent uncertainty and extreme volatility, financial markets will remain tense. We urge the US to clarify the parameters of upcoming tariff negotiations as much as possible

." Ken Loo, Secretary General of the Cambodia Textile, Garment, Footwear, and Travel Goods Association, lamented that current international trade has no rules—it could change every day

. He said:

"(The extension) is a relief for most garment industry headquarters, but there is still a 10% reciprocal tariff, which wasn't there a week ago. So today's relief is relative to yesterday, but the situation may change again tomorrow." Chris Humphrey, Executive Director of the EU-ASEAN Business Council, also criticized Trump's policies, saying they are "causing serious disruption to markets and businesses." Humphrey complained:

"Implementing tariffs is bad enough, but constantly changing rates and timetables make it even harder for businesses to plan effectively

. This leads to instability, which is detrimental to the global economy and to economies like those in Southeast Asia that rely heavily on trade

."

Negotiation Progress

Meanwhile, Vietnam, Japan, and South Korea have engaged with the Trump administration and reported back from the front lines.

According to Vietnam's official news agency, Vietnamese Deputy Prime Minister Hu Duc Phuc visited Washington on Wednesday and met with US Trade Representative Jamison Greer. Hu Duc Phuc stated that the US imposing higher tariffs on Vietnamese exports is inconsistent with the mutually beneficial economic and trade relationship between the two countries and does not align with the spirit of the comprehensive strategic partnership between Vietnam and the US

. As a result of the talks, both sides agreed to initiate negotiations on a "reciprocal" trade agreement. Following this news, Vietnam's benchmark VN index rose 6.77% on Wednesday, marking its largest single-day gain since 2001