Southeast Asia Braces for Tariff Tensions With Washington

Southeast Asia's leading economies are gearing up to intensify trade negotiations with the United States after facing significant tariffs, despite last-minute efforts to boost imports and reduce tariffs on American goods.

The region, heavily reliant on exports and manufacturing, is experiencing the impact of President Donald Trump's sweeping tariffs, which remain unchanged at 32% for Indonesia and 36% for Thailand as of August 1. These rates persist despite various offers, including increased purchases of U.S. goods and tariff reductions on a broad array of imports from the U.S.

While details of the tariffs remain unclear, Malaysia, a prominent exporter of semiconductors and electronics, is now subject to a 25% tariff. Indonesia and Thailand are attempting to renegotiate, with Indonesia's top negotiator heading to Washington to secure a better deal. Both countries face the potential loss of market share in key industries, such as palm oil and rice.

(With inputs from agencies.)