KUALA LUMPUR: The United States (US) has not ruled out imposing another round of tariffs on countries in the Association of Southeast Asian Nations (ASEAN) if trade negotiations fail to produce a favourable outcome for Washington.
US Trade Representative (USTR) Jamieson Greer said the country is currently focused on negotiating trade deals with ASEAN economies.
“Right now, we are in the process of negotiating deals and establishing a stable economic relationship between the United States and ASEAN countries,” he said.
“What we are focused on right now is the negotiations, not tariffs,” he added when asked whether the US would impose further tariffs on ASEAN countries.
“That being said, if we are unable to reach agreements, then tariffs remain a possible solution,” Greer told reporters on the sidelines of the 57th ASEAN Economic Ministers Meeting (AEM) and related gatherings here.
Asked whether semiconductor exports from ASEAN countries were “safe” from US tariffs, he noted that the global semiconductor supply chain is highly complex.
“It is also critical to national security for both the United States and ASEAN nations. As such, we want to be very careful and thorough in addressing the international trade situation.
“We have to ensure supply chains for the United States, but ASEAN countries remain an important source for semiconductors,” Greer added.
Last month, the US imposed 19 per cent tariffs on Malaysia, Cambodia, the Philippines, Thailand and Indonesia.
Vietnam faced a slightly higher rate of 20 per cent, followed by Brunei at 25 per cent, while the US’s major trading partner, Singapore, continued to face the lowest tariff among ASEAN nations at 10 per cent, unchanged since its initial implementation.
In contrast, Laos and Myanmar were the hardest hit, with tariffs reaching 40 per cent.
President Donald Trump had indicated, after announcing last month’s tariffs, that the US might impose “fairly substantial” tariffs on semiconductor imports, but no such measures have been implemented so far.