Asia Braces For Trump’s Tariffs: South Korea, Thailand, Vietnam, Japan Scramble Ahead Of August Deadline

Several Asian economies are racing to strike last-minute trade deals with the U.S. ahead of an Aug. 1 deadline that could trigger steep new tariffs under President Donald Trump’s global tariff strategy.

South Korea

South Korea’s top trade official said Monday that the country may reach an “agreement in principle” with the U.S. on tariffs before the Aug. 1 deadline, according to local media cited by Reuters. 

Trade Minister Yeo Han-koo, following high-level talks in Washington last week, said “twenty days are not enough to come up with a perfect treaty that contains every detail,” and noted “considerable progress” on industrial cooperation.

Yeo said that South Korea may need to make a “strategic judgment” on the agriculture and livestock sectors, suggesting that while “sensitive” areas may require protection, some aspects could be considered within the broader deal framework. 

He added that South Korea is working to avoid “unfair” U.S. tariffs on autos and steel that could damage industrial ties with its closest security ally.

Trump said, “South Korea wants to make a deal right now,” without providing details.

South Korea is hoping to avoid a 25% tariff set to begin Aug. 1, after a delayed start to negotiations following President Lee Jae-myung’s June 4 inauguration. 

According to Korea Customs Service data, South Korea recorded a $55.6 billion trade surplus with the U.S. in 2024, up 25% from the prior year due to rising car exports.

Thailand

In Thailand, Finance Minister Pichai Chunhavajira said Monday the government is considering zero tariffs on more U.S. imports, according to Reuters. 

He also said 200 billion baht ($6.1 billion) in soft loans would be made available to cushion the blow from U.S. tariffs. 

Thailand faces a 36% tariff from Washington if no agreement is reached before Aug.1.

Vietnam

Vietnamese Prime Minister Pham Minh Chinh said Friday that the U.S. and Vietnam have reached a consensus on a tariff deal framework, according to Bloomberg, citing local media outlet The Investor. 

Chinh made the remarks during a meeting with the U.S.-ASEAN Business Council in Hanoi, which includes companies such as Apple, Boeing, and Amazon.

Vietnam was reportedly surprised by Trump’s recent announcement of a 20% tariff deal, and the country is now supposedly seeking a lower rate. 

Chinh urged U.S. businesses to support a detailed agreement on product-level terms, oppose trade defense actions against Vietnamese goods, and press the U.S. to recognize Vietnam as a market economy.

Japan

Meanwhile, tensions have also emerged in U.S.-Japan trade relations. 

Reuters reported Friday that the U.S. Secretary of State Marco Rubio downplayed concerns, saying there was “no drama or division,” despite Japanese Prime Minister Shigeru Ishiba stating Thursday that Japan needed to reduce dependence on the U.S. in areas like security, food, and energy.

Trump announced a 25% tariff on Japanese imports last week. 

Japanese media previously reported the U.S. had asked Japan and other Asian allies to raise defense spending to 5% of GDP, which the Financial Times said led to Japan canceling a key bilateral defense and foreign ministers meeting.

Rubio rejected claims of pressure, saying Washington merely encouraged Tokyo to invest in certain capabilities.

He added that Japan's push for greater military autonomy was welcomed by the U.S. “Anyone looking for drama or division... shouldn’t be doing it,” Rubio said. 

A former Biden official told Reuters the relationship was strained, but said tensions could ease if a deal is reached by Aug. 1.

On Stocktwits, iShares MSCI South Korea ETF (EWY) and iShares MSCI Japan ETF (EWJ) both saw ‘high’ message volume, with sentiment rated ‘neutral’ for EWY and ‘bearish’ for EWJ.

iShares MSCI Thailand ETF (THD) recorded ‘neutral’ sentiment with ‘extremely high’ message volume. VanEck Vietnam ETF (VNM) showed ‘extremely bullish’ sentiment amid ‘extremely high’ message volume.

Meanwhile, SPDR S&P 500 ETF Trust (SPY) showed ‘bearish’ sentiment amid ‘low’ message volume.

See also: Oil Prices Edge Higher As Trump Teases Russia Sanctions

For updates and corrections, email newsroom[at]stocktwits[dot]com.