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ASEAN Nations Under New Trade Pacts
MONDAY, OCTOBER 27, 2025
- The United States has granted 0% import tariffs on specific products from three ASEAN countries: Thailand, Malaysia, and Cambodia.
- Malaysia's tariff exemption applies to its aerospace equipment, pharmaceutical, and key commodity (palm oil, cocoa, rubber) sectors.
- Thailand received 0% tariffs on select items as part of a reciprocal deal, committing to purchase over $20 billion in US agricultural products, energy, and aircraft.
- The new 0% tariff policy reverses a previously imposed 19% retaliatory tariff on the three nations.
The decision, formalised under new agreements, was announced during the recent ASEAN Summit in Kuala Lumpur.
President Donald Trump authorised the tariff exemption measures, reversing an earlier imposition of a reciprocal 19% retaliatory tariff that had affected the nations.
The approval, reported by the news agency DetikFinance, means a variety of goods from the three Southeast Asian countries will now be able to enter the US market duty-free.
This trade concession is seen as a significant move by Washington to deepen economic cooperation and promote trade diversity across the region.
Thailand’s Reciprocal Deal
Thailand and the US reached a “Reciprocal Trade” Framework Agreement designed to expand bilateral economic ties and investment.
Under the terms of the deal, Thailand committed to purchasing US agricultural products, energy supplies, and aircraft valued at over $20 billion USD.
In return, Bangkok agreed to scrap tariffs on nearly 99% of US goods. While the US retained its 19% retaliatory customs tariff on most products, it granted a 0% tariff status to certain selected Thai items.
Details concerning which Thai products are included in this exemption have not yet been released.


