In recent weeks, the United States and China have exchanged escalating rhetoric and statements about trade and rare earth minerals. As each side has worked to address lingering concerns over those issues, President Trump has continued working with other Southeast Asian countries to improve access to markets and rare earth minerals. Over the weekend, the United States entered into expanded trade agreements and frameworks with Malaysia, Cambodia, Thailand, and Vietnam.
Under the deals, the four Southeast Asian countries pledged to remove trade barriers and provide preferential market access to various US goods. The deals also include commitments in digital trade, services, and investments, as well as promises by Southeast Asian countries to protect labor rights and strengthen environmental protections.
In exchange, the United States will maintain the current reciprocal tariff rates for the countries and work to provide tariff exemptions for certain sectors, such as aerospace and pharmaceuticals, as well as other commodities.
The corresponding reciprocal tariff rates for these nations will be:
- Malaysia – 19%
- Cambodia – 19%
- Thailand – 19%
- Vietnam – 20%
Regarding Vietnam, the US agreed to an expanded trade framework, with further details to be negotiated over the coming weeks. In the framework, the US will maintain the current 20% reciprocal tariff rate on imports from Vietnam and identify products for potential tariff adjustment and/or elimination. This will occur during the negotiation phase between the two countries. There are also broad agreements around reducing regulatory and trade burdens between the two countries and increasing Vietnamese purchases of US exports in aerospace, automobiles, agriculture, and energy.
These are positive developments that provide regional trade relief and certainty in the midst of high-stakes negotiations between the US and China. They will also provide an opportunity for consumer products, like home furnishings, to potentially secure an adjusted tariff rate in light of the recent Section 232 tariffs on upholstered furniture and the existing reciprocal tariffs.
Importantly, the more detailed trade agreements with Malaysia and Cambodia identify compliance with illegal logging issues and associated trade. That could tie in to a broader negotiation with the Section 232 investigation on timber and logging.
With these developments, it is important to note that the reciprocal tariff rates and Section 232 duties on upholstered furniture remain in effect. We await further implementation details and the final language regarding these trade deals.
HFA will continue to monitor the implementation of these agreements and advocate for furniture-related tariff relief where possible. We remain committed to keeping our members informed and engaged as trade negotiations evolve—ensuring your voice is heard in Washington and beyond.
