By Elaine Kurtenbach, Associated Press Business Writer
BANGKOK (AP) – US President Donald Trump has announced trade agreements with Japan and several other Asian countries that will ease pressure on businesses and consumers from the broad tariffs on exports to the United States.
The deal with China is in negotiations, and U.S. Treasury Secretary Scott Bescent said the August 12 deadline has been postponed again, allowing more time for talks.
However, sudden tariffs on US steel and aluminum imports remain, and many other countries, including South Korea and Thailand, have yet to sign contracts. Overall, economists say tariffs will inevitably indentured growth in Asia and the world.
So far, deals have reached ahead of Trump’s August 1 deadline
President Trump and the Japanese Prime Minister announced on Wednesday a contract would impose a 15% tariff on US imports from Japan from Trump’s proposed 25% “mutual” tariffs.
This has been a great relief for automakers like Toyota Motor Corporation and Honda. Trump has also announced trade deals between the Philippines and Indonesia. After meeting with Philippine President Ferdinand Marcos Jr., Trump said import taxes on products from his country would be subject to 19% tariffs.
Indonesia has also committed to removing almost all of the trade barriers to American goods imports, facing 19% tariffs from the 32% rate Trump said would recently apply. Previously, Trump announced that Vietnam’s exports will face 20% tariffs, but there was no official announcement, but that fee is twice the price of goods from China.
Consultations with China may be extended
Negotiations with China will be subject to the August 12 deadline, but that is likely to be extended, Bessent told Fox Business on Tuesday. He said both sides will hold another round of talks in Sweden early next week. Meanwhile, Trump said a trip to China could happen soon, suggesting efforts to stabilize US-China trade ties.
The preliminary agreement, announced in June, paved the way for China to lift restrictions on exports of rare earth exports, high-tech and other minerals that are important for manufacturing. In May, the US agreed to lower Trump’s 145% tariff rate to 30% for Chinese products for 90 days, while China agreed to lower 125% for US products to 10%. The reprieve gave businesses time to rush to beat potentially high tariffs, boosting China’s exports and reducing some of the pressure on the manufacturing sector. However, long-term uncertainty about what Trump will do has made businesses more cautious about committing to further investment in China.
There are no transactions yet for Korea or other Asian countries.
Some Asian countries and others are under pressure as the deadlines for hitting trades are approaching.
Trump will send a letter posted to the True Society, outline higher tariffs, and some countries will face if they fail to reach an agreement. He said if they retaliate by raising their own import operations, they would face even higher tariffs. Korea is set at 25%. Imports from Myanmar and Laos will be taxed on 40%, Cambodia and Thailand will be taxed on 36%, Serbia and Bangladesh will be taxed 35%, South Africa, Bosnia and Herzegovina 30%, and Kazakhstan, Malaysia and Tunisia will be taxed 25%.
The status of consultations with India remains unknown, but progress appears to depend on the country’s heavily protected agricultural sector. It faces 26% tariffs.
Almost all countries have faced a minimum collection of 10% for goods entering the US since April, in addition to taxation in other sectors.
Economists expect tariffs to grow sap even in trade transactions.
Even after Trump pulled back from the harshest of his threatened tariffs, the uncertainty and higher costs onslaught for both manufacturers and consumers poses risks for the region and the global economy. Economists have downgraded estimates of growth from 2025 onwards.
The Asian Development Bank said on Wednesday it reduced growth rates in developing economies in Asia and the Pacific to 4.7% in 2025 and 4.6% in 2026, cutting 0.2 and 0.1 percentage points.
The outlook for the region could be further bleaked by escalating tariffs and trade frictions. “Other risks include conflicts and geopolitical tensions that could disrupt global supply chains and raise energy prices,” and the worsening of China’s sick real estate market.
AMRO economists were not optimistic, hoping for Southeast Asia and other major economies to grow by 3.8% in 2025 and 3.6% next year.
Countries in the region have moved to protect their economy from Trump’s trade shock, but they face serious uncertainty, said Don he, Amro’s chief economist.
“Uneven progress in tariff negotiations and the potential expansion of tariffs on additional products could further disrupt trade activities and strain regional growth,” he said.
Original issue: July 23, 2025 7:45am EDT
