US Trade Representative: ASEAN Tariffs Risk if Negotiations Fail
- The United States is continuing negotiations with several Association of southeast Asian Nations (ASEAN) countries regarding tariff deals, but has not ruled out the possibility of imposing steeper...
- In August, former US President Donald Trump announced the potential for 100% tariffs on semiconductor imports.However, semiconductors exported from Malaysia currently remain exempt from the 19% reciprocal tariff...
- Last month, the US implemented varying tariffs on other ASEAN nations: Cambodia, the Philippines, Indonesia, and Thailand faced a 19% tariff; Vietnam, 20%; Brunei, 25%; and Singapore, 10%.
US Trade Representative Signals Potential Tariffs on ASEAN Nations
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Negotiations Ongoing, Tariffs a Possible Outcome
The United States is continuing negotiations with several Association of southeast Asian Nations (ASEAN) countries regarding tariff deals, but has not ruled out the possibility of imposing steeper tariffs if these negotiations fail to yield favorable results. US Trade Representative Jamieson greer stated on Friday, September 25, that the focus remains on reaching agreements, but tariffs are a potential solution if talks stall.
Existing Tariffs and exemptions
In August, former US President Donald Trump announced the potential for 100% tariffs on semiconductor imports.However, semiconductors exported from Malaysia currently remain exempt from the 19% reciprocal tariff that went into effect on August 8. This exemption is subject to an ongoing investigation under Section 232 of the Trade Expansion Act of 1962,and tariffs could still be imposed depending on the outcome of the probe.
Last month, the US implemented varying tariffs on other ASEAN nations: Cambodia, the Philippines, Indonesia, and Thailand faced a 19% tariff; Vietnam, 20%; Brunei, 25%; and Singapore, 10%. Laos and Myanmar were the most heavily affected, with tariffs set at 40%.
Malaysia’s Semiconductor Trade with the US
In 2024, Malaysia exported approximately RM120 billion (USD $25.3 million as of September 26, 2025) worth of electrical and electronic (E&E) products to the US, with semiconductors accounting for RM60.6 billion (USD $12.8 million) of that total.Greer acknowledged the importance of Southeast Asia as a source for the semiconductor supply chain, while also emphasizing the need to bring supply chains back to the US.
Global Semiconductor Industry Considerations
Greer highlighted the complexity of the global semiconductor industry and the US’s careful approach to international trade. The US aims to rebuild its domestic supply chain while recognizing the continued significance of Southeast Asia in this sector.