The United States has officially granted a 0% import tariff exemption to three Southeast Asian countries, such as Thailand, Malaysia, and Cambodia. The policy was announced during the ASEAN Summit in Kuala Lumpur and directly approved by President Donald Trump.
The decision not only eliminates import duties on a wide range of products from the three countries entering the U.S. market, but it also significantly relaxes the 19% retaliatory tariffs that Washington previously imposed on these countries.
As a result, major Southeast Asian products can now enter the U.S. market without import cost burdens, opening up far greater export opportunities for the region.
Thailand: Multi-Billion Dollar Trade Commitments
One of the key aspects of the agreement is the bilateral cooperation between Thailand and the United States through the signing of the “Reciprocal Trade Framework Agreement.”
Under this agreement, Thailand commits to purchasing more than USD 20 billion worth of U.S. products, ranging from agricultural commodities and energy supplies to aircraft.
In return, the Thai government has agreed to lower tariffs on nearly 99% of U.S.-origin products and ease foreign ownership restrictions in the telecommunications sector.
Although Washington is maintaining a 19% reciprocal tariff on most imported goods, several Thai products will now be subject to a 0% tariff rate. This is expected to strengthen the country’s export competitiveness in the U.S. market. However, the list of eligible products has yet to be released to the public.
Malaysia: Major Gains Across Three Key Sectors
Meanwhile, Malaysia has secured 0% tariff exemptions for three strategic sectors that form the backbone of its economy—aerospace equipment, pharmaceutical products, and key commodities such as palm oil, cocoa, and rubber.
Malaysia’s Minister of International Trade and Industry, Tengku Zafrul Aziz, stated that this policy will significantly enhance Malaysia’s export competitiveness and strengthen its trade relations with the United States.
He also noted that the move sends a positive signal to Malaysian industry players to expand their market share in the United States, especially amid intense global competition.
As part of the arrangement, Malaysia has also committed to purchasing nearly USD 150 billion worth of U.S. products, including semiconductors, data center equipment, and aerospace technologies. The two countries additionally signed a memorandum of understanding on currency policy to maintain balanced trade relations.
Furthermore, Malaysia has agreed to enhanced strategic cooperation in the supply chain of critical minerals and rare earth elements, pledging not to impose export bans or quotas on the U.S. This move solidifies Malaysia’s position as a key partner for Washington in the global minerals sector.
Cambodia and the U.S. Economic Diversification Effort
Cambodia has become the third ASEAN country to benefit from the United States’ 0% tariff policy. The two countries signed a “Reciprocal Trade Framework Agreement" that includes the elimination of 100% of tariffs on U.S. industrial goods as well as food and agricultural products exported to Cambodia.
In return, the United States will maintain a 19% reciprocal tariff on certain products while identifying product categories from Cambodia that qualify for the 0% tariff rate.
However, the Cambodian government has welcomed the policy, expressing hope that key sectors such as garments and footwear—which account for nearly half of the country’s total exports—will soon enjoy full tariff exemptions.
Economic Strategy or Political Move?
Behind the 0% tariff policy lies a political dimension that is equally noteworthy. Washington’s move can be interpreted as an effort to deepen its engagement with ASEAN nations amid China’s growing economic influence in the region.
By providing trade incentives, the U.S. aims to build a stronger and more reliable economic network in Southeast Asia.
The policy also reflects a shift in American economic strategy, from a protectionist stance toward a model of strategic partnership grounded in mutual economic interdependence. In the long term, this initiative could become a crucial foundation for shaping a new economic framework between the U.S. and ASEAN countries.
Nevertheless, analysts believe that the effectiveness of this policy will depend heavily on how each nation capitalizes on the opportunities provided. What is certain is that the United States’ decision to open its market freely to these three Southeast Asian countries marks a significant new chapter in trans-Pacific trade relations.
