The White House announced on Oct. 26 that reciprocal trade agreements were reached with the governments of Malaysia, Vietnam, Cambodia, and Thailand, in which the countries will respectively end import tariffs on U.S. goods. The White House on Sunday, Oct. 26, announced a reciprocal trade agreement has been reached between President Trump and Malaysia Prime Minister Anwar Ibrahim during a visit to Kuala Lumpur. In the deal, there is no change to the 19% IEEPA reciprocal tariff for Malaysia. However, the deal states that if the U.S. has also identified products from the list set out in Annex III of the Sept. 5 Executive Order, Potential Tariff Adjustments for Aligned Partners, to receive a 0% reciprocal tariff rate, as noted in preliminary analysis of the trade deal by NCBFAA Customs Counsel and Legislative Advisor Sandler, Travis & Rosenberg, P.A. Through the agreement, Malaysia will open its markets to U.S. exports and allow non-discriminatory and preferential market access to U.S. agricultural and industrial goods, in addition the country will address a range of non-tariff barriers to ensure that U.S. exporters can access its market, according to the White House. The Annexes and Appendices for this U.S.-Malaysia trade deal are posted here.
The Trump Administration also announced a reciprocal trade agreement has been reached with Vietnam. Under this agreement, the U.S. will maintain the 20% reciprocal tariffs on Vietnam products, as set forth in the April 2 Executive Order 14257, as amended, and will also identify products from the list set out in Annex III to the Sept. 5 Executive Order 14346, Potential Tariff Adjustments for Aligned Partners, to receive a 0% reciprocal tariff rate. The agreement also eliminates tariffs and on-tariff barriers for U.S. agricultural products and industrial goods exported to Vietnam.
Another U.S. reciprocal trade agreement was reached with Cambodia in which the country agreed to eliminate all tariffs on U.S. goods, including food and agricultural products and industrial goods, meaning that U.S. exports to Cambodia will not face a duty. Cambodia also committed to treat U.S. exports fairly, including recognizing U.S. regulatory oversight to ensure that U.S. goods do not need to undergo burdensome additional testing requirements.
The U.S. will maintain the 19% reciprocal tariffs for Cambodia goods, as set forth in the April 2 Executive Order 14257, as amended, and identifies products from the list set out in Annex III to the Sept. 5 Executive Order 14346, Potential Tariff Adjustments for Aligned Partners, to receive a 0% reciprocal tariff rate. More details are available here, including Annex 1 and Schedules 1 and 2.
In addition, the Trump administration announced that it has reached a framework with Thailand for an agreement on reciprocal trade, which will address tariff and non-tariff barriers for agricultural products and industrial goods. Under that framework, Thailand would eliminate tariff barriers on approximately 99% of goods, covering a full range of U.S. industrial and food and agricultural products.
The U.S., however, will maintain the 19% reciprocal tariffs on Thailand products, as set forth in the April 2 Executive Order 14257, as amended, and will identify products from the list set out in Annex III to the September 5 Executive Order.
