US signs deals with Southeast Asian countries

US President Donald Trump has signed a series of deals with Cambodia, Malaysia, Thailand, and Vietnam, Kallanish understands. 

The news comes as the US seeks to secure critical mineral sources independent of China, while Washington and Beijing are nearing a trade deal.

At a summit of the Association of Southeast Asian Nations over the weekend, Cambodia committed to facilitating US investments in critical minerals and energy resources and to scrap 100% tariffs on US imports. Similarly, Thailand has agreed to eliminate tariffs on nearly all US goods, although the US is maintaining a 19% “reciprocal” tariff on Thai imports. 

Both Thailand and Malaysia have signed separate memoranda of understanding with the US to boost cooperation in the critical minerals space. In particular, Kuala Lumpur has committed never to ban or restrict US buyers for rare earths and rare earth magnets, as well as speeding up the development of US-led projects in its territory, including granting extended operating licences to increase production capacity. 

Malaysia will also provide “significant preferential market access” for a series of US imports, including chemicals, machinery and electrical equipment, metals, and passenger vehicles. While Kuala Lumpur has agreed to accept vehicles made respecting US motor vehicle safety and emissions standards, both Thailand and Vietnam said they would look into doing the same.

As part of the trade agreement between the US and Vietnam, Hanoi has committed to providing preferential market access for “substantially all” US industrial and agricultural imports. However, the US maintains “reciprocal” tariffs of 19% and 20% on Malaysia and Vietnam, respectively.

Source:Kallanish