ASEAN Countries Gear Up as U.S. Tariff Deadline Looms

On July 9, 2025, the US will implement tariffs on Southeast Asia, triggering diverse regional reactions: Indonesia suggests a new trade package, Vietnam finalizes agreements, the Philippines adopts a wait-and-see approach, while Cambodia and Laos pursue multilateral solutions.

U.S. Tariffs and ASEAN Responses

The United States plans to implement a comprehensive tariff regime against Southeast Asian nations starting July 9, 2025, with duties between 10% and 49%. This move has prompted various responses across ASEAN, as countries rush to defend their export sectors. While Malaysia advocates for regional unity, most members are focusing on domestic strategies, securing last-minute concessions or adjusting their trade exposure. Each nation is adopting a unique approach as the deadline approaches, reflecting differing priorities and capacities.

Indonesia’s Proposal and Strategic Positioning

Indonesia, heavily reliant on exports, has put forward a $34 billion trade and investment package to mitigate the impact of U.S. tariffs. The proposal includes U.S. purchases of aircraft and wheat, in exchange for tariff relief, and better access to Indonesian minerals such as nickel and copper. Currently under review in Washington, Indonesia aims to position itself as a key partner in reshaping global supply chains, hoping to avoid severe economic repercussions if its proposal is accepted timely.

Vietnam, Singapore, and Vulnerable ASEAN Members

Vietnam has already secured a bilateral agreement reducing tariffs to an average of 20%, with stricter measures on Chinese transshipped goods, bolstering its position. Singapore, with smaller export dependencies, is adopting a cautious, institutional approach, mainly engaging in regional discussions and contingency planning. Conversely, Cambodia and Laos, the most vulnerable, are relying on ASEAN’s multilateral efforts for relief, conducting assessments, and preparing mitigation strategies due to their limited leverage in bilateral negotiations.

Read the original article : ASEAN Nations Mobilize Ahead of U.S. Tariff Deadline