The past week has brought significant developments in the Trump administration’s trade policy, as the US signed a series of new trade frameworks with Asian nations.

Over the weekend, the US finalised agreements with Vietnam, Malaysia, Thailand, and Cambodia, marking a continued push to redefine regional trade relationships.

Under the new frameworks:

  • Vietnam will retain its existing 20% tariff level, though discussions are underway to eliminate duties on select items.

  • Thailand will maintain a 19% tariff rate but has committed to reducing tariffs on 99% of US goods.

  • Malaysia and Cambodia signed full reciprocal trade agreements, capping ad valorem tariffs at no higher than 19%.

Perhaps more notably, officials confirmed that the US and China have reached a preliminary framework for a potential trade deal, set to be discussed in detail when President Trump meets President Xi Jinping later this week.

According to early reports, the prospective deal may include China delaying export controls on rare earth minerals – vital for US technology and defense industries – while Trump would withdraw plans to impose a 100% tariff increase on Chinese imports.

Meanwhile, the Supreme Court case to decide whether Trump’s tariffs were introduced illegally is set to be heard on November 5th.

A Federal Court ruled in May that Trump had exceeded his authority by issuing executive orders imposing tariffs on more than 90 countries individually and a 10% baseline tariff on the rest of the world. The US Court of Appeals upheld that decision in August, agreeing that Trump’s reliance on emergency economic powers to enact sweeping tariffs went beyond his presidential powers.

In response, the administration petitioned the Supreme Court to intervene. If the lower court rulings are upheld, the decision could invalidate large portions of Trump’s tariff regime, potentially resulting in the refund of billions of dollars of duties.

The Westbound team will be keeping a close eye on developments.

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.