Shifts In U.S. Trade In Asia: Key Agreements From President Trump's October 2025 Asia Trip – Part I: Southeast Asia

Capping off a highly eventful week in Asia, President Donald J. Trump has further reshaped the landscape of U.S. trade with the Asia-Pacific region through a series of new agreements. This latest round of negotiations includes new reciprocal trade deals and market access commitments across Cambodia, Thailand, Malaysia, Vietnam, China, South Korea, and Japan. Some of these agreements build upon the foundation laid by Executive Order 14346 (Sept. 5, 2025). That order provided for zero percent tariffs on products listed in Annex III, once a qualifying trade deal was announced.¹ With some agreements now in place, Annex III of the EO is being actively implemented.

Below, we highlight the key terms and commitments made under these new agreements for the Southeast Asian countries (Vietnam, Malaysia, Cambodia, and Thailand). We will return with Part II of this post to cover the East Asian countries (China, South Korea, and Japan).

We also include a summary table for quick reference.

Vietnam

The Framework for an Agreement on Reciprocal Trade between the United States and Vietnam represents another milestone in the expansion of bilateral trade relations over the past three decades. Vietnam has committed to removing tariffs on virtually all U.S. goods, including food and agriculture products. In return, the United States will maintain its current 20 percent reciprocal tariff rate on imports from Vietnam, while certain Vietnamese products listed in Annex III of Executive Order 14346 will be eligible for a zero percent reciprocal tariff rate once a final agreement is signed and entered into force.

Additionally, under the framework agreement, Vietnam has committed to removing various non-tariff barriers. Specifically, Vietnam will accept vehicles built to U.S. federal motor vehicle safety and emissions standards, allow importation of remanufactured goods from the United States, approve marketing authorizations for medical devices legally approved in the United States, and streamline regulatory approval of U.S. pharmaceutical products. Vietnam will also continue to increase market access for U.S. agricultural exports by accepting certificates issued by U.S. regulatory authorities, and commit to refrain from imposing customs duties on digital products and services.

The framework agreement also includes a mutual commitment to align on economic security issues such as supply chain resilience, duty evasion, and export controls. Additionally, Vietnam committed to strengthening its environmental protections and addressing the market-distorting effects of its state-owned enterprises. Finally, Vietnam has pledged to purchase $8 billion worth of aircraft from Boeing and $2.9 billion in U.S. agricultural commodities.

In the coming weeks, the United States and Vietnam will continue negotiations to reach a finalized trade agreement.

Malaysia

The Agreement on Reciprocal Trade between the United States and Malaysia seeks to expand bilateral economic relations, with the hope of achieving further mutual market access.

Malaysia has agreed to provide preferential access, with rates lower than its Most Favored Nation (MFN) duty rates, to various U.S. products as identified in Schedule 1 to Annex I of the agreement.² Selected U.S. goods, including those within the chemicals, machinery and electrical equipment, metals, passenger vehicle, food, and agriculture sectors, will receive reduced or duty free treatment. Other U.S. products will remain subject to MFN rates.

The United States, on the other hand, will maintain its overall 19 percent reciprocal tariff rate on Malaysian goods, while eliminating duties on select goods identified in Schedule 2 to Annex I,³ once the agreement enters into force. The duty free treatment under Schedule 2 reflects the White House's prior commitment to provide duty exemptions on certain products to trade partners who have sufficiently aligned with the United States, as reflected in a finalized trade agreement.

Additional key provisions include the reduction of non-tariff barriers, including Malaysia's commitment to accept U.S. vehicles built to U.S. motor vehicle safety and emissions standard, streamline import requirements for U.S. steel products and Halal products, and accept certificates issued by U.S. regulatory authorities for food and agricultural products. Malaysia has also pledged increased enforcement with regards to environmental protections, counterfeiting and piracy, intellectual property, and forced labor. With regards to the trade in digital products and services, Malaysia agreed not to impose service taxes on U.S. service providers, and to support the United States position in favor of a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization.

Significantly, the agreement includes a requirement for Malaysia to align its economic security policies with those of the United States. Under the terms of the agreement, if the United States imposes a customs duty, quota, prohibition, fee, charge, or other import restriction on a good or service of a third country for economic or national security reasons, upon notification, Malaysia will be required to adopt an equally restrictive measure within a timeline acceptable to both parties. Malaysia also agreed to address dumping by third party countries, to align with all unilateral export controls in force by the United States, and to enhance its processes for export control and inbound investment review. Notably, the agreement contains a clause permitting the United States to terminate the agreement if Malaysia enters into a trade agreement with a "country that jeopardizes essential U.S. interests" (e.g., China).

The agreement will enter into force 60 days after the parties certify they have completed all necessary legal procedures for implementation (or on any other date the parties agree to).

Cambodia

The Agreement on Reciprocal Trade between the United States and Cambodia represents a another step toward deepening economic ties and mutual market access. Cambodia has committed to zero percent tariffs on all U.S. industrial and food/agricultural goods as identified in Schedule 1⁴ to Annex I.The United States will maintain its original reciprocal tariffs at a maximum of 19 percent, while allowing zero percent tariffs for specific Cambodian-origin products as identified in Schedule 2 to Annex I once the agreement enters into force. The agreement further prohibits Cambodia from imposing quotas on U.S. goods entering Cambodia unless mutually agreed upon.

Other key provisions include the reduction of non-tariff barriers, aiming for transparent and streamlined import licensing, recognition of U.S. standards and certificates for both industrial and agricultural products, and elimination of duplicative regulatory requirements. On digital trade, Cambodia has agreed to refrain from imposing discriminatory digital services taxes and to facilitate cross-border digital commerce—including unrestricted data transfer and cooperation on cybersecurity. A notable commercial commitment includes Cambodia's purchase of Boeing aircraft.

On the national security front, Cambodia has agreed to align its own export controls with those of the United States on a case-by-case basis upon U.S. request, taking steps to ensure that Cambodian companies do not act as intermediaries for third-country actors seeking to circumvent these controls—commonly referred to as "backfilling"—or otherwise undermine the efficacy of U.S. restrictions. Cambodia will also assist the United States in restricting transactions between Cambodian nationals and individuals/entities from third countries who are featured on key U.S. sanctions and restricted parties lists. These lists include the Department of Commerce's Bureau of Industry and Security Entity List, as well as the Department of the Treasury's Specially Designated Nationals (SDN) and Blocked Persons List, plus the Non-SDN Consolidated Sanctions List.

The agreement will enter into force immediately after each party notifies the other that it has completed all internal procedures necessary to implement the agreement.

Thailand

The Framework for an Agreement on Reciprocal Trade between the United States and Thailand represents a significant expansion of bilateral market access. Thailand will remove tariffs on approximately 99 percent of goods, including a broad array of U.S. industrial and agricultural exports. In return, the United States will maintain a 19% tariff rate on imports from Thailand, with certain products identified for zero percent tariffs per Annex III of Executive Order 14346 once a final agreement is signed and enters into force.

Beyond tariffs, the agreement commits Thailand to removing a wide array of non-tariff barriers. These include accepting U.S. manufactured vehicles manufactured to comply with U.S. federal motor vehicle safety and emissions standards and FDA certificates and prior marketing authorizations for medical devices and pharmaceuticals, and issuing import permits for U.S. ethanol for fuel. In agriculture, Thailand will expedite access for USDA-certified meat and poultry, among others.

Additional provisions focus on protections for labor and the environment, intellectual property enforcement, and fostering digital trade and investment.

The agreement also anticipates substantial commercial transactions between U.S. and Thai companies in agriculture, energy, and aviation, with billions of dollars in annual purchases and procurement of U.S.-manufactured aircraft. Over the coming weeks, both sides will negotiate and finalize the agreement, paving the way for signature and implementation of these forward-looking commitments.

The United States and Thailand also signed a Memorandum of Understanding designed to enhance cooperation and investment in the development of secure, diversified, and resilient global critical minerals supply chains.

Trade Agreements Table

Footnotes

1. See Annex III "Potential Tariff Adjustments for Aligned Partners" starting on page 38. Annex III is an a-la-carte menu of reciprocal tariffs that the president may lift in the event of a trade deal or agreement with a country.

2. Malaysian customs duties on goods with staging codes beginning with an "E" will be eliminated either immediately or over time in annual installments. Duties on goods with staging codes beginning with an "R" will be reduced to a specified level (e.g., R5 = reduced to 5%). Goods under codes "A", "B", "C", "D", or "Z" will remain at dutiable at current rates. Finally, goods marked with staging code "TRQ" are governed by tariff-rate quotas as described in Appendix 1 to Schedule 1.

3. Schedule 2 is substantially similar to Annex III contained in E.O. 14346, with slight variances in HTSUS codes listed.

4. Cambodian customs duties on originating goods provided for in the items in staging category A shall remain zero and customs duties on originating goods provided for in the items in staging category EIF shall be eliminated entirely, and these goods shall be duty-free on the date of entry into force of the Agreement.

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