On October 26, 2025, the Trump Administration announced a series of trade agreements with Malaysia and Cambodia, as well as framework agreements with Thailand and Vietnam, marking expanded US economic engagement across Southeast Asia.
Vietnam: According to a joint statement, Vietnam will open its market to most US exports on a duty-free basis, while the United States maintains a 20% tariff on Vietnamese goods, with some exceptions, to be listed in Annex III to Executive Order 14346, which has not yet been published. Vietnam has agreed to accept US safety standards, ease import rules for medical and agricultural products, and improve protections for intellectual property. Among the commercial deals, Vietnam Airlines will purchase 50 Boeing planes valued at USD 8 billion and USD 2.9 billion in US agricultural exports.
Malaysia: Malaysia and the United States have announced a bilateral agreement on reciprocal trade. Malaysia will afford “significant preferential market access” to imports of US industrial and agricultural goods over defined staging periods (up to 9 years). In return, the US has committed to maintaining a 19% baseline duty on most goods, with certain goods being eligible for tariff-free treatment. Again, exempted products will be listed in Annex III to Executive Order 14346. Malaysia will accept US standards and ease import rules on products including motor vehicles and parts, medical devices, pharmaceuticals and agriculture, “preferential market access” for American goods and strengthening intellectual property protections. The agreement also includes Malaysia’s pledge to develop its critical minerals sector in partnership with US companies and refrain from banning or imposing quotas on exports of rare earth elements to the US. It further provides for economic and national security alignment, which involves Malaysia adopting complementary trade actions against third countries when addressing a shared economic or national security concern and cooperating to enforce US export controls and sanctions lists in a manner consistent with its domestic laws and regulations. The agreement also includes a ban on forced labor, environmental enforcement and support for digital trade with no discriminatory taxes. Security and investment cooperation is a key feature, including Malaysia’s commitment to capital investment of USD 70 billion in the US, purchase of 30 Boeing aircraft (with an option for 30 more) and purchase of estimated USD 150 billion in US semiconductors, aerospace components, and data center equipment. The agreement will take effect 60 days after ratification, with a 180-day exit option. Malaysia also commits to adopting measures to combat transshipment — a significant focus of trade negotiations between the United States and Asian trade partners — and tariff evasion, including by entering into a separate cooperation agreement.
Cambodia: Under an announced agreement between the United States and Cambodia, Cambodia will eliminate tariffs on all US industrial and agricultural goods, while the United States will maintain a 19% tariff rate but offers zero tariffs on select Cambodian products which will be listed in Annex III to Executive Order 14346. Both countries will reduce non-tariff barriers and recognize US food safety standards. Cambodia has committed to banning forced labor imports and enforcing environmental protections, and the agreement includes cooperation on digital trade, intellectual property, and investment. There will also be joint efforts on export controls, investment security, and supply chain resilience, with Air Cambodia expected to collaborate with Boeing on a major commercial deal. As with the Malaysia agreement Cambodia is to adopt measures to tamp down on transshipment and duty evasion.
Thailand: According to a joint statement, Thailand will eliminate tariffs on about 99% of U.S. goods, while the U.S. will maintain a 19% tariff on most Thai goods, but will offer zero tariff for certain goods from a list set out in Annex III to Executive Order 14346. Also, Thailand will ease non-tariff barriers by accepting U.S. safety and emissions standards for vehicles, FDA certificates for medical devices and pharmaceuticals, and U.S. regulatory certificates for food and agricultural products. It will also issue import permits for US ethanol, remove the customs reward system, and adopt good regulatory practices. Labor and environmental commitments include amending Thai labor laws to protect freedom of association and collective bargaining, enforcing measures against forced and child labor, and maintaining high environmental standards. Thailand will combat the trading of illegal forest products, unregulated fishing, and wildlife trade. Thailand will promote resource efficiency and implement the WTO Agreement on Fisheries Subsidies. Thailand will strengthen intellectual property enforcement and address barriers to digital trade by not imposing a digital services tax, ensure free transfer of data across trusted borders for the conduct of business, supporting the WTO moratorium on electronic transmission duties, not impose screen quotas for US films, easing telecom ownership restrictions, and eliminating in-country processing for debit card transactions. Further, Thailand will curb distortionary practices by state-owned enterprises and enhance economic and security cooperation with the US on supply chain resilience, export controls, and duty evasion. Finally, Thailand and US noted major deals including USD 2.6 billion annually in agricultural purchases, USD 5.4 billion in energy purchases, and USD 18.8 billion for 80 U.S. aircraft procurement
Next Steps: In the coming weeks the White House has suggested that it will coordinate with Cambodia, Malaysia, Thailand and Vietnam “undertake domestic formalities” to effectuate the respective agreements. Businesses with supply chain dependencies on these countries should likewise take steps to prepare for the impacts of the new agreements coming into effect. Recommended steps include:
- Monitor continuing negotiations and developments, especially to ascertain the effective dates of any changes
- Review sourcing to assess impact of tariffs on operations
- Consider product eligibility for tariff-free access, once this list is made available
- Adapt to updated regulations on safety, labor, and environmental practices.
- Take advantage of harmonized standards for food, drugs, and vehicles.
- Monitor changes in import/export documentation requirements.
- Engage with specialist legal and compliance teams to navigate new trade rules and avoid penalties.
