The Trump administration’s revised global tariff plan, which takes effect on August 7, has brought a mix of relief and continued pressure to Southeast Asia. While several nations in the region successfully negotiated significant reductions from the steep “reciprocal” tariffs threatened in April, Laos and Myanmar are facing some of the highest rates imposed globally.
Under an executive order signed by President Donald Trump, goods from Laos and Myanmar will be hit with a 40% import duty, second only to the 41% tariff levied on Syria. The White House has not offered a specific rationale for the high rates on the two Southeast Asian nations, whose trade volumes with the U.S. are relatively small. For Myanmar, which saw its initially proposed rate of 44% lowered to 40%, the hefty tariff will deepen an economic collapse that began after the 2021 coup.
In a stark contrast, several of their neighbors secured dramatically lower rates. Cambodia, Vietnam, Indonesia, Malaysia, and Thailand will see tariffs on their U.S. exports set between 19% and 20%. This comes as welcome news after facing the threat of much higher levies, such as the 49% originally slated for Cambodia and 36% for Thailand.
The reductions for Cambodia and Thailand followed a U.S.-brokered ceasefire to end a recent deadly border clash. Cambodian Prime Minister Hun Manet hailed the 19% tariff as “the best news for the people and economy of Cambodia. His top trade negotiator, Sun Chanthol, added that the lower rate would help avert the collapse of the country’s vital garment industry and allow it to compete with regional neighbors.
Similarly, a Thai government spokesman called the finalized 19% rate a “major success. Thailand, in its push to avoid higher duties, offered significant concessions, including eliminating tariffs on 90% of American imports and committing to reduce its trade surplus. Trade agreements had also been previously announced with Vietnam and Indonesia.
However, not all nations saw reductions. Brunei faces a slight increase in its tariff rate from 24% to 25%. The Philippines also saw a modest rise from a proposed 17% to a finalized 19% tariff, a rate confirmed in a deal reached this month.
Singapore and East Timor were notable exceptions, facing only the baseline 10% tariff, a reflection of the U.S. having a trade surplus with both nations.
The new tariff structure is part of President Trump’s “trade emergency” declaration, which cites persistent U.S. trade deficits as a threat to national security.
Overview of U.S. Tariffs on Southeast Asian Countries:
Cambodia: 19% (down from 49%)
Laos: 40% (down from 48%)
Vietnam: 20% (down from 46%)
Myanmar: 40% (down from 44%)
Indonesia: 19% (down from 32%)
Brunei: 25% (up from 24%)
Malaysia: 19% (down from 24%)
Philippines: 19% (up from 17%)
Thailand: 19% (down from 36%)
Singapore: 10%
East Timor: 10%