Amid President Donald Trump’s visits to Malaysia, Japan and South Korea, his administration issued new details on several trade deals in the region. Here’s a quick summary of those agreements:
In a legally binding trade agreement signed Oct. 26, Cambodia eliminated tariffs on all U.S. products, while the U.S. will maintain a 19% reciprocal tariff rate for Cambodian imports, except for certain products identified in Annex III to Executive Order 14346 of Sept. 5, 2025, which will receive a zero tariff rate.
Other key elements of the agreement include:
- Commitments to support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization and to refrain from imposing digital services taxes.
- Enhancing intellectual property protection and prioritizing enforcement against intellectual property theft.
- Strengthening cooperation to increase supply chain resilience, including cooperating on export controls and addressing duty evasion.
- Prohibiting the importation of goods made by forced labor and strengthening the enforcement of its labor laws.
Trump met with Emperor Naruhito and recently elected Prime Minister Sanae Takaichi in Japan on Oct. 28 and signed an agreement that includes:
- Japan commits to a $550 billion investment in the U.S. in exchange for a 15% tariff rate.
- U.S. access to rare earth materials.
- Cooperation to expand shipbuilding capacity in both nations.
Under the agreement signed Oct. 26, imports from Malaysia will be subject to a 19% reciprocal tariff rate, except for certain products identified in Annex III, which will be subject to zero reciprocal tariff.
Malaysia has also committed to:
- Development of critical minerals and rare earths sectors in partnership with U.S. companies.
- Refraining from imposing digital services taxes on U.S. social media platforms, online service providers and other electronic transmissions.
- Enhancing intellectual property protection and prioritizing enforcement against intellectual property theft.
- Addressing violations in sectors with a high risk of forced labor and child labor.
The U.S. and Thailand (“Thailand”) have agreed to a framework for an agreement on reciprocal trade, with details to be finalized. Meanwhile, the tariff rate for imports from Thailand remains at 19%, with certain products from Annex III subject to zero tariff.
Other key elements of the forthcoming agreement are expected to include:
- Thailand will amend its customs laws to remove the customs reward system related to customs breaches and penalties and adopt and implement good regulatory practices.
- Commitments related to protecting internationally recognized labor rights and addressing violations in sectors with a high risk for forced labor and child labor.
- Measures to combat trade in illegally harvested forest products.
- Commitments to resolve long-standing intellectual property issues, including enforcement against trademark counterfeiting and copyright piracy.
- Thailand commits to refraining from imposing digital services taxes or measures that discriminate against U.S. digital services or digital products.
- Enhancing supply chain resilience, addressing unfair trade practices of third parties, cooperating on export controls and combatting duty evasion.
The U.S. and Vietnam have agreed to a framework for a trade agreement, with details still to be finalized. Meanwhile, imports from Vietnam remain subject to 20% reciprocal tariffs, with certain products listed in Annex III subject to zero tariff.
The framework for the forthcoming agreement also calls for:
- Finalizing commitments on digital trade, services and investment
- Addressing intellectual property, labor and environmental concerns and promoting good regulatory practices.
- Enhancing supply chain resilience, addressing duty evasion and cooperating on export controls.
What’s Next For Trade Talks In Asia
The U.S. and South Korea are still discussing the tentative trade agreement reached over the summer. In particular, South Korean President Lee Jae Myung wants more flexibility in how to fulfill a promised $350 billion investment in the U.S. in exchange for a 15% tariff rate.
Trump is set to meet with Chinese President Xi Jinping in South Korea on Oct. 30 in hopes of reaching a deal to avoid an additional 100% tariff on Chinese goods that Trump has threatened in response to China’s recent restrictions on rare earth mineral exports.
Meanwhile, the Office of the U.S. Trade Representative has opened an investigation under Section 301 of the Trade Act of 1974 into China’s adherence to a 2020 trade deal known as the Phase One Agreement. USTR is inviting public comments starting Oct. 31 and will hold a hearing in connection with this investigation. The investigation is likely to complicate this week’s trade talks.
PPAI’s advocacy partner Thorn Run Partners has compiled a special report reviewing the tariffs imposed by the administration so far, as well as some of the actions potentially on the horizon. Read or download the full report here: Tariffs: Where Things Stand And What’s On The Horizon.
