Southeast Asia to step up US trade talks over Trump’s new tariffs

Malaysian Trade Minister Tengku Zafrul Aziz takes part in negotiations with the US Secretary of Commerce Howard Lutnick in April 2025. (Malaysian Trade Ministry)
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Updated 08 July 2025
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Southeast Asia to step up US trade talks over Trump’s new tariffs

  • Indonesian government ‘very optimistic’ about upcoming negotiations 
  • Thai minister vows to ‘fight to the very end’ for best possible deal 

JAKARTA: Officials in Southeast Asian countries prepared on Tuesday to step up trade negotiations with Washington after President Donald Trump’s administration hit some of them with over 30 percent tariffs, despite a raft of new concessions and offers to boost investment in the US.

Trump sent letters on Monday to over a dozen nations, notifying them of new tariff rates set to begin on Aug. 1. About half were heavily export-reliant Southeast Asian economies. 

In Indonesia, the region’s largest economy, Trump’s announcement came despite last week’s offer to increase imports of US wheat, soybean, cotton, corn and energy products in a deal that could go as high as $34 billion, and to boost investment in the US.  

Jakarta has immediately sent Airlangga Hartarto, its top negotiator and senior economics minister, to Washington to hold talks with US officials.

“We have a team of negotiators ready in Washington, D.C., and our coordinating minister for economic affairs is on his way to D.C.,” Hasan Nasbi, head of the presidential communications office, told reporters in Jakarta on Tuesday afternoon.

“With the date extended to Aug. 1, it means we have a few weeks’ opportunity to negotiate, and our government is very optimistic about these negotiations as we have good relations with all countries, including the US.”

Trump said in a Truth Social post on Sunday that countries “aligning themselves with the Anti-American policies of BRICS, will be charged an additional 10% Tariff. There will be no exceptions to this policy.”

The post followed Sunday’s summit of BRICS — a geopolitical forum that includes Russia, China, India, and Indonesia — which condemned Trump’s tariffs.

The US is Indonesia’s second-largest export market after China, with exports valued at around $26.3 billion in 2024, according to data from Indonesia’s Central Statistics Agency. Last year, Indonesia ran a $16.8 billion goods trade surplus with the US.

Also, Thailand is facing a tariff rate of 36 percent, despite offering to cut levies to zero on many US imports last week.

“The United States has not yet considered our latest proposal,” Thai Finance Minister Pichai Chunhavajira wrote on X. 

“We will not stop; we will keep fighting. We will seek additional measures and find more solutions to ensure that we all fight to the very end, to secure the best possible deal for Thailand.” 

In 2024, Thailand’s shipments to the US accounted for 18.3 percent of its total and were worth about $54.96 billion last year, making the US the country’s biggest export market. 

Malaysia, for whom the US is the second-largest trading partner after China, and the largest export destination — with total trade worth $71.4 billion in 2024 — faces a 25 percent tariff rate.

Its Trade Minister Tengku Zafrul Aziz said the country “remains committed to constructive engagement” with the US.

“While we understand concerns regarding trade imbalances, we believe that dialogue and engagement are the best approach,” he wrote on X.

“(Malaysia’s Trade Ministry) will continue discussions with U.S. counterparts to address unresolved issues. Our goal is to achieve a balanced, mutually beneficial, and comprehensive trade agreement.” 


US to cut roughly 200 NATO positions, sources say

Updated 21 January 2026
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US to cut roughly 200 NATO positions, sources say

  • Trump famously threatened to withdraw from NATO during ⁠his first presidential term and said on the campaign trail that he would encourage Russia to attack NATO members that did not pay their fair share on defense

WASHINGTON: The United States plans to reduce the number of personnel it has stationed within several key NATO command centers, a move that could intensify concerns ​in Europe about Washington’s commitment to the alliance, three sources familiar with the matter said this week.
As part of the move, which the Trump administration has communicated to some European capitals, the US will eliminate roughly 200 positions from the NATO entities that oversee and plan the alliance’s military and intelligence operations, said the sources, who requested anonymity to discuss private diplomatic conversations.
Among the bodies that will be affected, said the sources, are the UK-based NATO Intelligence Fusion Center and the Allied Special Operations Forces Command in Brussels. Portugal-based STRIKFORNATO, which oversees some maritime operations, will also be cut, as will several other similar NATO entities, the sources said.
The sources did not specify why the US had decided to cut the number of staff dedicated to the NATO roles, but the moves broadly align with the ‌Trump administration’s stated intention to ‌shift more resources toward the Western Hemisphere.
The Washington Post first reported the decision.

TRUMP ‌RE-POSTS ⁠MESSAGE ​IDENTIFYING NATO ‌AS THREAT
The changes are small relative to the size of the US military force stationed in Europe and do not necessarily signal a broader US shift away from the continent. Around 80,000 military personnel are stationed in Europe, almost half of them in Germany. But the moves are nonetheless likely to stoke European anxiety about the future of the alliance, which is already running high given US President Donald Trump’s stepped-up campaign to wrest Greenland away from Denmark, raising the unprecedented prospect of territorial aggression within NATO.
On Tuesday morning, the US president, who is scheduled to fly to the World Economic Forum in Switzerland in the evening, shared another user’s post on social media that identified NATO as a threat to the ⁠United States. The post described China and Russia as merely “boogeymen.”
Asked for comment, a NATO official said changes to US staffing are not unusual and that the US presence in ‌Europe is larger than it has been in years.
“NATO and US authorities are in ‍close contact about our overall posture – to ensure NATO retains our ‍robust capacity to deter and defend,” the NATO official said.
The White House and the Pentagon did not respond to requests for ‍comment.

MILITARY IMPACT UNCLEAR, SYMBOLIC IMPACT OBVIOUS
Reuters could not obtain a full list of NATO entities that will be affected by the new policy. About 400 US personnel are stationed within the entities that will see cuts, one of the sources said, meaning the total number of Americans at the affected NATO bodies will be reduced by roughly half.
Rather than recalling servicemembers from their current posts, the US will for the most part decline to ​backfill them as they move on from their positions, the sources said.
The drawdown comes as the alliance traverses one of the most diplomatically fraught moments in its 77-year history. Trump famously threatened to withdraw from NATO during ⁠his first presidential term and said on the campaign trail that he would encourage Russian President Vladimir Putin to attack NATO members that did not pay their fair share on defense. But he appeared to warm to NATO over the first half of 2025, effusively praising NATO Secretary-General Mark Rutte and other European leaders after they agreed to boost defense spending at a June summit.
In recent weeks, however, his administration has again provoked alarm across Europe. In early December, Pentagon officials told diplomats that the US wants Europe to take over the majority of NATO’s conventional defense capabilities, from intelligence to missiles, by 2027, a deadline that struck European officials as unrealistic. A key US national security document released shortly after called for the US to dedicate more of its military resources to the Western Hemisphere, calling into question whether Europe will continue to be a priority theater for the US
In the first weeks of 2026, Trump has revived his longstanding campaign to acquire Greenland, an overseas territory of Denmark, enraging officials in Copenhagen and throughout Europe, many of whom believe any territorial aggression within the alliance would mark the end of NATO. Over the weekend, ‌Trump said he would slap several NATO countries with tariffs starting February 1 due to their support for Denmark’s sovereignty over the island. That has caused European Union officials to mull retaliatory tariffs of their own.