ALL EYES ON TRUMP’S AUGUST 1 DEADLINE

As global markets continue to digest US President Donald Trump's latest trade announcements, attention now turns to the rapidly approaching Aug 1 deadline that could reshape Southeast Asia’s economic landscape.

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While recent bilateral deals have provided some clarity, Thailand faces the dual challenge of securing favourable trade terms with the US while managing an unexpected military escalation with Cambodia.

TRUMIP’S TARIFF TEMPLATE

The MSCI World Index of equities has continued its upward trajectory following Trump's announcement of new trade agreements that appear to establish a regional framework.

Japan secured a 15% tariff rate (down from 24%), while the Philippines and Indonesia both achieved 19% rates, down from 20% and 32% respectively. These developments, combined with Vietnam's earlier 20% agreement, suggest Southeast Asian nations may face similar tariff levels.

The US-Japan deal, which Trump dubbed “the largest trade deal in history’, reveals the administration’s negotiating blueprint. Japan's commitment to establish a $550-billion US investment fund, alongside promises to purchase 100 Boeing aircraft and billions of dollars’ worth of defence equipment annually, demonstrates the scale of concessions required to secure preferential rates.

However, the agreement has drawn sharp criticism from US automotive manufacturers, who argue that reducing tariffs on Japanese cars fails to address the core trade imbalance while disadvantaging American producers.

With automobiles and auto parts comprising 80% of the US-Japan trade gap, industry representatives question whether the deal serves American interests.

EU PREPARES FOR TRADE WAR