US Announces: Agreement Reached, Some Goods to Have Zero Tariff!

On October 26 and 27 local time, the White House website released 10 announcements, declaring that the United States had signed a series of agreements on trade and critical minerals with five Asian countries: trade agreements with Thailand, Malaysia, Cambodia, and Vietnam, and critical minerals agreements with Japan, Malaysia, and Thailand.

According to these agreements, the United States will maintain a 19% tariff rate for Thailand, Malaysia, and Cambodia, and grant tariff exemptions for certain products; a 20% tariff rate will apply to Vietnam, with zero tariffs on some goods.

Of particular note, export control cooperation has been included as one of the terms in the U.S.-Vietnam agreement, used as a bargaining chip in exchange for tariff reductions, improved market access, etc.

Thailand: Will eliminate tariffs on approximately 99% of goods, covering the full range of industrial and food and agricultural products from the United States.

Commit to resolving U.S. export barrier issues, simplifying import licensing and customs procedures; commit to purchasing U.S. aircraft, agricultural products, and energy products.

The United States: Will maintain the reciprocal tariff of 19% on goods originating from Thailand under Executive Order No. 14257 (as amended) dated April 2, 2025.

Mattel will finalize the trade agreement in the coming weeks.

►Cambodia: Eliminates 100% tariffs on U.S. industrial products, food, and agricultural products;

Cancel non-tariff trade barriers, including addressing import licensing issues, simplifying regulatory requirements, and combating piracy.

The United States maintains a reciprocal tariff of 19% on goods originating from Cambodia and grants tariff exemptions on certain products.

In the trade agreement between the two parties, Section 4 is the rules of origin.

If the benefits of this agreement are largely attributed to a third country or its nationals, the contracting parties may establish necessary rules of origin to achieve the contracting parties' intentions regarding this agreement.

Malaysia: Committed to providing preferential market access for U.S. industrial and agricultural exports.

Commit to investing $70 billion in the United States over the next decade; purchase American aircraft and energy products.

► USA: The reciprocal tariff on goods originating from Malaysia remains at 19%, with certain products being granted tariff exemptions.

In the trade agreement with Malaysia, there are also rules of origin.

Vietnam: Will provide preferential market access for almost all industrial and agricultural exports from the United States; commits to purchasing American aircraft and energy products;

►United States: A reciprocal tariff of 20% is imposed on goods originating from Vietnam; some products have a 0% tariff.

According to the framework agreement, the United States will retain reciprocal tariffs ranging from 19% to 20% on imports from the aforementioned four countries, but promises to provide exemptions for certain products from the countries that sign the agreement. The scope of these exemptions will be the core of subsequent negotiations.

The United States has also signed critical mineral agreements with Japan, Thailand, and Malaysia. Against the backdrop of China tightening rare earth exports, this move aims to provide U.S. companies with priority access to strategic resources like rare earths and reduce reliance on a single supply chain.