KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 23 May 2025 - Asian countries are navigating uncertainty amidst the U.S. tariff pause. The region runs a large trade surplus with the U.S., and many countries' economies rely heavily on exports. Now, the Asian states have about seven weeks left to negotiate new trade deals with the U.S. Octa Broker looks at the progress made so far and weighs the chances for a final agreement. Ever since Donald Trump became the 47th President of the United States (U.S.), the markets have grown increasingly concerned about the health of the world economy. Specifically, the outlook for the international trade order became uncertain as Trump's 2024 election platform included expansive claims about new tariffs. Indeed, on 2 April, 2025, Trump unveiled his long-promised 'reciprocal' tariffs strategy, essentially imposing hefty import duties on more than a hundred of countries. However, less than a week after revealing his reciprocal tariffs, Trump adjusted his policy, declaring that countries that had not retaliated would receive a reprieve until July and would only face a blanket US tariff of 10%. At the same time, the tariffs on China were increased even further. The principal idea behind Trump's aggressive trade policy is that higher import costs would encourage global manufacturers to re-locate production into the U.S., while also pressuring other nations to buy more U.S. goods, thereby correcting the U.S.'s massive trade deficit. Thus, counties that run large trade surpluses with the U.S. have most to fear and most to lose from these tariffs. Many of these countries are located in South and Southeast Asia (see the table below). For these countries, Trump's decision to pause the reciprocal tariffs for 90 days has offered a critical window for negotiation. Source: International Monetary Fund, White House The negotiations between the U.S. with China commenced and have already yielded some positive results. There is hope among other Asian states that similar productive discussions and agreements to mitigate the impact of the proposed tariffs can follow. The coming weeks are crucial as countries navigate the negotiation period before the 90-day pause expires, seeking to secure more favorable trade conditions with the U.S. China is a central focus of the U.S. trade policy. In 2024, the total value of goods traded between two countries was approximately $582.4 billion. The U.S. relies heavily on Chinese imports of electronic equipment and machinery, while China primarily imports U.S. mineral fuels, oil seeds, electrical machinery and mechanical appliances. However, the trade balance significantly favors China, which recorded a $360 billion surplus with the U.S. in 2024, according to IMF data. Last Monday, Donald Trump announced a broad trade deal with Beijing that lowered import taxes on all Chinese goods from 145% to 30%. China, in turn, lowered its tariffs on U.S. imports from 125% to 10%. The reductions will hold for the next 90 days, while the two countries negotiate a longer-term deal. A few days later, the U.S. cut the so-called 'de minimis' tariff for low-value shipments from China to as low as 30%. Meanwhile, the Chinese...