By Agencies and published by CNA
NEW US tariffs on a wide swath of America’s trading partners will now go into effect on Aug. 7 after President Donald Trump signed an executive order on Thursday (July 31) modifying the rates for many economies.
The order capped off a hectic day as nations sought to continue negotiating with Trump, as his trade agency continues to test the global economy.
Follow live updates.
US trade deal will boost Thailand’s competitiveness
The 19 percent tariff rate agreed with the US will help bolster Thailand’s competitiveness globally and boost investor confidence, said Finance Minister Pichai Chunhavajira.
The new rate is significantly lower than the 36 percent level announced in April.
The US was Thailand’s largest export market last year, accounting for 18.3 percent of total shipments, or US$54.96 billion.
“The announcement of the 19 percent tariff rate reflects the strong friendship and close partnership between Thailand and the United States,” Pichai said on X.
“It helps maintain Thailand’s competitiveness on the global stage, boosts investor confidence, and opens the door to economic growth, increased income, and new opportunities for the country,” he added.
Thailand’s top exports to the United States last year were computers, teleprinters and telephone sets, and rubber products. Its top imports from the US were crude oil, machinery and parts, and chemicals.
“Best news for the people”: Hun Manet
Cambodian Prime Minister Hun Manet welcomed a 19 percent trade tariff imposed by Trump, which is significantly lower than the earlier threatened levy of 36 percent.
“This is the best news for the people and economy of Cambodia to continue to develop the country,” he wrote on Facebook.
The lowered rate comes after Cambodia and Thailand agreed to an immediate and unconditional ceasefire after Trump had threatened not to make trade deals with either country if they continued fighting over a border dispute.
20% tariff rate “temporary”: Taiwan
Taiwan’s president and his Cabinet said the announced 20 percent US tariffs will be “temporary” and the government will continue to advocate for reasonable tariff rates as they complete the final stage of negotiations.
“Once a final agreement is reached, the tariff rate is expected to be reduced further,” according to a Facebook post from Lai Ching-te.
Taiwan had the sixth-largest trade deficit with the US last year, exporting US$73.92 billion more to the US than it took in, according to data from the US and Taiwan governments.
At a glance: Which economies face new tariff rates?
On Apr. 2, Trump shocked the world by announcing 10 per cent baseline tariffs across all countries, with some facing higher levies.
Now, just hours away from his latest self-imposed Aug 1 deadline for trading partners to strike deals with the US, Trump announced adjustments to some reciprocal tariff rates.
Here’s a look at key economies that face a different rate compared with the figure announced on Apr. 2:
– EU: 20 percent to 15 percent
– UK: 25 percent to 10 percent
– Japan: 24 percent to 15 percent
– South Korea: 25 percent to 15 percent
– Taiwan: 32 percent to 20 percent
– India: 26 percent to 25 percent
– Malaysia: 24 percent to 19 percent
– Indonesia: 32 percent to 19 percent
– Philippines: 17 percent to 19 percent
– Vietnam: 46 percent to 20 percent
– Thailand: 36 percent to 19 percent
– Cambodia: 49 percent to 19 percent
– Brunei: 24 percent to 25 percent
– Laos: 48 percent to 40 percent
– Myanmar: 44 percent to 40 percent
Southeast Asian countries
In the region, Malaysia now faces a lower 19 percent tariff rate on its goods exported to the US, compared to the previous 25 percent.
Countries in the region which did not strike deals with the US – such as Myanmar and Laos – face steep levies of 40 percent.
Meanwhile, Singapore, where the US has a trade surplus, will likely see its tariff rate remain at 10 percent.
Others, such as Thailand, Cambodia, Vietnam, Indonesia and the Philippines, were dealt levies at the rates that were agreed upon during negotiations.
What are investors saying?
The tariff announcement brings clarity in form but not in function, said Charu Chanana, chief investment strategist at Saxo markets Singapore.
“We now have a list of countries and their respective rates, but the logic behind these numbers is far from transparent,” she said.
“There are no real winners here. The US administration can claim a political win, having followed through on its threats, but economically the impact will be felt in higher prices, disrupted supply chains, and slower growth.
“Even countries that got away with 10 percent duties aren’t celebrating, they’re still dealing with a fractured trade landscape and the volatility in frameworks.”
Meanwhile, Brian Jacobsen, chief economist at Annex Wealth Management in Wisconsin said: “Just because we now have clarity on the tariffs, that doesn’t mean we have certainty about their effects.”
“There are those who think that tariff-induced consumer price inflation will slowly build as businesses work down inventories and test how strong their pricing power is. Others think the tariff-induced inflation will peak earlier, showing up mostly in crimped profit margins and resulting in slower growth.
“However, what tariffs take with one hand, maybe tax incentives to invest and more open foreign markets can give with the other hand.”
Mixed market reaction
Asian markets were mixed on Friday morning following Trump’s announcement of new tariff rates for some trading partners.
South Korea’s Kospi slid the most – it was down 2.81 percent as at 8.45 a.m. Thailand time.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.84 percent as at 9 a.m.
As of 7.50 a.m. Thailand time, Japan’s Nikkei saw a slight decline of 0.41 percent.
The Straits Times Index rose slightly by 0.29 percent at 8.54 a.m. Thailand time
The Kuala Lumpur Stock Exchange was also up by 0.95 percent at 9.43 a,m. Thailand time
CAPTIONS:
Top: US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, Apr. 2, 2025. File photo: REUTERS/Carlos Barria and published by CNA
Insert: Shipping containers at the port in Keelung, Taiwan on Aug. 1, 2025. Photo: AFP/I-Hwa Cheng and published by CNA
Front Page: US President Donald Trump speaks during an event on July 31, 2025, in the Roosevelt Room of the White House in Washington. File photo: AP/Jacquelyn Martin and published by CNA
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