President Donald Trump has imposed tariffs on almost every country in the world. However, during his Asia tour, Trump allowed three Southeast Asian countries to export goods duty-free.
The Nation reported that the United States has officially announced tariff exemptions on imports of some products from Thailand, Malaysia, and Cambodia.
The decision was formally made at the ASEAN summit in Kuala Lumpur under the new trade agreement. The three countries had previously been subject to 19 percent retaliatory tariffs. Trump has approved the removal of the tariffs.
According to a report by Detic Finance, this approval will now allow various products from Thailand, Malaysia, and Cambodia to enter the United States duty-free.
This commercial facility is seen as an important step by Washington, which will strengthen economic cooperation with the region and expand trade relations.
Thailand and the United States have reached a framework agreement aimed at increasing economic ties and investment between the two countries.
Under the agreement, Thailand will buy American agricultural products, fuel supplies and aircraft, worth more than $20 billion.
In return, Bangkok will remove tariffs on about 99 percent of American goods. While the US maintains a 19 percent retaliatory tariff on most goods, tariffs on certain Thai goods have been removed.
It has not yet been announced which Thai products fall under this duty-free benefit.
On the other hand, Malaysia has ensured duty-free benefits for three important product sectors.
Malaysia’s International Trade and Industry Minister Tengku Zafarul Aziz said the tariff exemptions would apply to aerospace equipment, pharmaceutical products and key commodities, such as palm oil, cocoa and rubber.
Meanwhile, neighboring Indonesia is also in talks with the US for similar duty-free benefits, with the country’s Economic Affairs Minister Airlangga Hartartho expressing hope that a deal could be concluded in the next few weeks.
