Cautious relief in Asia-Pacific over new US tariffs but concerns remain

Trade uncertainties far from over and more 'deals' are certain to follow, say experts

- Yip Wai Yee

TAIPEI/SYDNEY/NEW DELHI/KUALA LUMPUR/BANGKOK Several economies across the Asia-Pacific can now breathe a cautious sigh of relief after Washington lowered tariff rates for their exports.

But government officials, business groups and analysts said the announcements are by no means the end of their trade uncertainties, as it is still too early to assess the full extent of the impact.

"Don't assume this is the end of the story. Trump regards this as an ongoing reality show. More 'deals' or further tariff increases are almost certain to follow," said Mr Stephen Olson, a senior visiting fellow at ISEAS - Yusof Ishak Institute in Singapore and a former US trade negotiator, in a note.

US President Donald Trump signed an executive order on July 31 imposing tariff rates of up to 41 per cent on dozens of economies around the world - including those that had yet to finalise trade agreements just hours ahead of a selfimposed midnight deadline.

In Asia, the rates for Malaysia, Cambodia and Thailand were reduced to 19 per cent.

Malaysia, facing a possibility of a 25 per cent tariff, managed to negotiate the rate down - which its Trade Ministry said is "a positive outcome".

Cambodia was originally slapped with a tariff rate of 49 per cent, and Thailand 36 per cent.

Vietnam's tariff rate, despite ongoing negotiations and early momentum, remains at a previously announced 20 per cent, marginally higher than its regional competitors but substantially lower than the 46 per cent originally threatened.

Laos and Myanmar were saddled with 40 per cent tariffs.

Two of Washington's largest trading partners were finally given an answer, at least for now. Taiwan's exports will be subject to a tariff of 20 per cent, and India, 25 per cent. India also faces the threat of a yet-to-be-disclosed penalty for trading with Russia.