Trump Imposes New Tariffs on Southeast Asian Nations Including Thailand

 

President Donald Trump has signed a sweeping executive order imposing additional customs duties on multiple nations, with Thailand, Cambodia, and Malaysia facing a 19% tariff rate effective from 1st August.

 

The White House announced the new tariff structure, which will see Thailand, Cambodia, Indonesia, the Philippines, and Malaysia subjected to 19% duties, whilst Vietnam faces a slightly higher rate of 20%. 

 

The measures form part of what the administration has declared a "trade emergency" due to America's persistent trade deficit.

 

Other significant economies have received varying treatment under the new regime. Brazil, which Trump had previously threatened with tariffs of up to 50%, will face a more modest 10% rate. Taiwan has been assigned a 20% tariff, whilst Brunei faces 25%. Laos and Myanmar will bear the heaviest burden at 40%.

 

The new duties will apply to goods entering for consumption or withdrawn from warehouses for consumption at or after 12:01 AM Eastern Time, seven days following the executive order's signing—specifically 7th August.

 

 

Trade Emergency Declaration

Trump's 31st July executive order invokes emergency economic powers, citing America's substantial and persistent trade deficit as a threat to national security and economic stability.

 

The administration attributes the deficit to unfair trading practices by partner nations, including unequal tariff rates and trade barriers.

 

"Whilst some countries have shown cooperation in trade and security negotiations, the United States continues to face trading partners who ignore negotiations and take no action to address trade imbalances," the order states.

 

 

The declaration formalises the use of additional ad valorem duties against selected trading partners as a response to these perceived inequities.

 

 

Crackdown on Transshipment

A particularly stringent provision targets goods using "transshipment" through third countries to avoid tariffs. US Customs and Border Protection (CBP) has been granted enhanced powers to identify and penalise such practices.

 

Products identified as using transshipment methods will face:

• Increased tariffs of 40% instead of standard rates
• Customs law penalties
• Additional taxes and fees from the country of origin

 

The CBP will not permit any reduction or waiver of penalties in such cases. The US government will publish lists of countries and factories involved in tariff avoidance every six months for security and government procurement considerations.

 

 

 

Government-Wide Implementation

The executive order mandates immediate action across federal agencies. The Secretaries of Commerce and Homeland Security, alongside the US Trade Representative, have been tasked with urgent implementation.
 

 

Coordination will involve the Departments of State and Treasury, the President's Advisory Committee on Economic Security and Production, and the International Trade Commission. Agencies may suspend regulations temporarily, issue new guidelines, and apply relevant legislation directly to ensure practical implementation.

 

The order explicitly states it does not create legal rights for individuals to sue or claim benefits from the federal government, nor does it affect existing agency authorities or budget responsibilities.

 

Implementation costs will be borne by the Office of the US Trade Representative.