Most of the region’s biggest economies – Indonesia, Thailand, the Philippines, as well as Malaysia – face a 19 per cent tariff while Vietnam is charged a 20 per cent levy. These economies count the US among their top export destinations.
The figure was initially welcomed in the region as a reprieve when compared with tariffs of up to 49 per cent imposed on other countries. However, fears are mounting that Southeast Asian economies would have to foot an exorbitant bill for years to come because of their separate tariff deals.
Malaysia’s Trade Minister Tengku Zafrul Aziz told parliament on Monday that the country’s major companies would have to fork out up to US$150 billion over five years to buy US hi-tech products as part of a deal reached between both countries.
The deal includes an earlier US$19 billion commitment by national carrier Malaysia Airlines to buy as many as 60 Boeing commercial jets and a US$3.4 billion annual purchase of US liquid natural gas by energy giant Petronas.
