Did Asean members get short-changed by Trump on ‘strings attached’ trade deals?

The deals that US President Donald Trump sealed with several Asean partners in Kuala Lumpur earlier this week are what critics have called a “mixed blessing” that could lead to long-term economic costs outweighing short-term trade benefits.

The American leader closed deals on trade and critical minerals with four members of the Association of Southeast Asian Nations on Sunday, including reciprocal agreements with Malaysia and Cambodia, and pacts with Thailand and Vietnam to address trade barriers.

Washington maintained the 19 to 20 per cent tariffs it had imposed on these countries, but allowed for certain concessions, such as zero per cent tariffs on certain products and more commercial deals in exchange for wider market access for American goods.

Malaysia managed to secure zero tariffs on certain products, including aerospace equipment, pharmaceuticals and key commodities such as palm oil, cocoa and rubber. Details on lower or zero levies for Thailand and Cambodia have yet to be released.

Trump did not address his previous threat of imposing a 100 per cent tariff on semiconductors, as well as 40 per cent on transshipments, with the latter aimed at curbing US goods from being exported to China via Asean.

The US concessions at the Asean summit, including limited tariff reliefs, are largely incremental, according to analysts.